THE CODE ON SOCIAL SECURITY ACT, 2020 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 
PRELIMINARY 

SECTIONS 

1.  Short title extent, commencement and application. 
2.  Definitions. 
3.  Registration and cancellation of an establishment. 

CHAPTER II 
SOCIAL SECURITY ORGANISATIONS 

4.  Constitution of Board of Trustees of Employees’ Provident Fund. 
5.  Constitution of Employees’ State Insurance Corporation. 
6.  National Social Security Board and State Unorganised Workers’ Board. 
7.  Constitution of State Building Workers’ Welfare Boards. 
8.  Disqualification and removal of a member of any Social Security Organisation. 
9.  Procedure for transaction of business of Social Security Organisation, etc. 
10. Executive Heads of Central Board and Corporation. 
11. Supersession  of  Corporation,  Central  Board,  National  Social  Security  Board  or  State 

Unorganised Workers’ Board or the Building Workers’ Welfare Board. 

12. State Board, Regional Boards, local committees, etc. 
13. Entrustment of additional functions to Social Security Organisations. 

CHAPTER III 
EMPLOYEES’ PROVIDENT FUND 

14. Appointment of officers of Central Board. 
15. Schemes. 
16. Funds. 
17. Contribution in respect of employees and contractors. 
18. Fund to be recognised under Act 43 of 1961. 
19. Priority of payment of contributions over other debts. 
20. Chapter not to apply to certain establishments. 
21. Authorising certain employers to maintain provident fund accounts. 
22. Transfer of accounts. 
23. Appeal to Tribunal. 

CHAPTER IV 
EMPLOYEES STATE INSURANCE CORPORATION 

24. Principal Officers and other staff. 
25. Employees’ State Insurance Fund. 
26. Purposes for which Employees’ State Insurance Fund may be expended. 
27. Holding of property, etc. 
28. All employees to be insured. 
29. Contributions. 
30. Administrative expenses. 
31. Provisions as to payment of contributions by employer, etc. 
32. Benefits. 
33. Corporation’s power to promote measures for health, etc., of Insured Persons. 

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SECTIONS 

34. Presumption as to accident arising in course of employment. 
35. Accidents happening while acting in breach of law, etc. 
36. Occupational disease. 
37. References to medical board. 
38. Dependants’ benefit. 
39. Medical benefit. 
40. Provision of medical treatment by State Government or by Corporation. 
41. General provisions as to benefits. 
42. Corporation’s rights when an employer fails to register, etc. 
43. Liability of owner or occupier of factories, etc, for excessive sickness benefit. 
44. Scheme for other beneficiaries. 
45. Scheme for unorganised workers, gig workers and platform workers. 
46. Exemption of factories or other establishments belonging to Government or any local 

authority. 

47. Contributions, etc., due to corporation to have priority over other debts. 
48. Constitution of Employees Insurance Court. 
49. Matters to be decided by Employees Insurance court. 
50. Powers of Employees Insurance court. 
51. Proceedings of Employees Insurance courts. 
52. Appeal to High Court. 

CHAPTER V 
GRATUITY 

53. Payment of gratuity. 
54. Continuous service. 
55. Nomination. 
56. Determination of amount of gratuity. 
57. Compulsory Insurance. 
58. Competent authority. 

CHAPTER VI 
METERNITY BENEFIT 

59. Employment of, or work by, women prohibited during certain period. 
60. Right to payment of maternity benefit. 
61. Continuance of payment of maternity benefit in certain cases. 
62. Notice of claim for maternity benefit and payment thereof. 
63. Payment of maternity benefit in case of death of a woman. 
64. Payment of medical bonus. 
65. Leave for miscarriage, etc. 
66. Nursing breaks. 
67. Creche facility. 
68. Dismissal for absence during pregnancy. 
69. No deduction of wages in certain cases. 
70. Forfeiture of maternity benefit. 
71. Duties of employer. 
72. Power of Inspector-cum-facilitator to direct payments to be made. 

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SECTIONS 

CHAPTER VII 
EMPLOYEES’ COMPENSATION 

73. Reports of fatal accidents and serious bodily injuries. 
74. Employer’s liability for compensation. 
75. Compensation in case of death of or injury in plantation. 
76. Amount of compensation. 
77. Compensation to be paid when due and damages for default. 
78. Method of calculating monthly wages for purposes of compensation. 
79. Review. 
80. Commutation of half-monthly payments. 
81. Distribution of compensation. 
82. Notice and claim. 
83. Special provisions relating to accidents occurring outside Indian Territory. 
84. Medical examination. 
85. Contracting. 
86. Remedies of employer against stranger. 
87. Insolvency of employer. 
88. Power to require from employers statements regarding fatal accidents. 
89. Registration of agreements. 
90. Reference to competent authority. 
91. Appointment of competent authority. 
92. Venue of proceedings and transfer. 
93. Form of application. 
94. Power of competent authority to require further deposit in cases of fatal accident. 
95. Powers and procedure of competent authority. 
96. Appearance of parties. 
97. Method of recording evidence. 
98. Power to submit cases. 
99. Appeal against order of competent authority. 

CHAPTER VIII 
SOCIAL SECURITY AND CESS IN RESPECT OF BUILDING AND OTHER CONSTRUCTION WORKERS 

100. Levy and collection of cess. 
101. Interest payable on delay in payment of cess. 
102. Power to exempt from cess. 
103. Self-assessment of cess. 
104. Penalty for non-payment of cess within the specified time. 
105. Appeal to appellate authority. 
106. Registration of building workers as beneficiaries. 
107. Cessation as a beneficiary. 
108. Building and other construction worker’s welfare Fund and its applications. 

CHAPTER IX 
SOCIAL SECURITY FOR UNORGANISED WORKERS, GIG WORKERS AND PLANTFORM WORKERS 

109. Framing of schemes for unorganised workers. 
110. Funding of state government schemes. 
111. Record keeping. 
112. Helpline, facilitation centre, etc., for unorganised workers, gig workers and platform 

workers. 

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SECTIONS 

113. Registration of unorganised workers, gig workers and platform workers. 
114. Schemes for gig workers and platform workers. 

CHAPTER X 
FINANCE AND ACCOUNTS 

115. Accounts. 
116. Audit. 
117. Budget estimates. 
118. Annual report. 
119. Valuation of assets and liabilities. 
120. Holding of property, etc., by social security organisation. 
121. Writing off of losses. 

CHAPTER XI 
AUTHORITIES, ASSESSMENT, COMPLIANCE AND RECOVERY 

122. Appointment of Inspector-cum-Facilitators and their powers. 
123. Maintenance of records, registers, returns, etc. 
124. Employer not to reduce wages, etc. 
125. Assessment and determination of dues from employer. 
126. Appeal against order of Authorised officer relating to chapter IV. 
127. Interest on amount due. 
128. Power to recover damages. 
129. Recovery of amount due. 
130. Validity of certificate and amendment thereof. 
131. Other modes of recovery. 
132. Application of certain provisions of Income-tax act. 

CHAPTER XII 
OFFENCES AND PENALTIES 

133. Penalty for failure to pay contributions, etc. 
134. Enhanced punishment in certain cases after previous conviction. 
135. Offences by companies. 
136. Cognizance of offences. 
137. Prior opportunity before prosecution. 
138. Compounding of offences. 

CHAPTER XIII 
EMPLOYMENT INFORMATION AND MONITORING 

139. Reporting of vacancies to career centres. 
140. Exclusions from application of this chapter. 

CHAPTER XIV 
MISCELLANEOUS 

141. Social Security Fund. 
142. Application of Aadhaar. 
143. Power to exempt establishment. 
144. Power to defer or reduce. 
145. Liability in case of transfer of establishment. 
146. Members, officers and staff to be public servants. 
147. Protection of action taken in good faith. 

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SECTIONS 

148. Misuse of benefits. 
149. Power of central Government to give directions to state government and social security 

organizations. 

150. Power to frame schemes. 
151. Protection against attachment, etc. 
152. Power to amend schedule. 
153. Transitional provisions. 
154. Power of appropriate Government to make rules. 
155. Power of central Government to make rules. 
156. Power of state Government to make rules. 
157. Power of corporation to make regulations. 
158. Prior publication of rules, regulations, etc. 
159. Rules to give effect to arrangements with other countries for the transfer of money paid 

as compensation. 

160. Laying of rules, regulations and schemes, etc. 
161. Effect of laws and agreements inconsistent with this code. 
162. Delegation of powers. 
163. Power to remove difficulties. 
164. Repeal and savings. 

THE FIRST SCHEDULE 
THE SECOND SCHEDULE 
THE THIRD SCHEDULE 
THE FOURTH SCHEDULE 
THE FIFTH SCHEUDLE 
THE SIXTH SCHEDUEL 
THE SEVEN SCHEDULE 

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THE CODE ON SOCIAL SECURITY, 2020 

ACT NO. 36 OF 2020 

An Act to amend and consolidate the laws relating to social security with the goal to extend social 
security  to  all  employees  and  workers  either  in  the  organised  or  unorganised  or  any  other 
sectors and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Seventy-first Year of the Republic of India as follows:— 

[28th September, 2020.] 

CHAPTER I 

PRELIMINARY 

1. Short title, extent, commencement and application.—(1) This Act may be  called the Code on 

Social Security, 2020. 

(2) It extends to the whole of India. 

(3) It shall come into force on such date1 as the Central Government may, by notification in the Official 
Gazette,  appoint;  and  different  dates  may  be  appointed  for  different  provisions  of  this  Code  and  any 
reference in any such provision to the commencement of this Code shall be construed as a reference to the 
coming into force of that provision. 

(4) The applicability of the Chapters specified in columns (1) and (2) of the First Schedule shall, without 
prejudice to the applicability of the other provisions of this Code, be such as is specified in corresponding 
entry in column (3) of that Schedule. 

(5) Notwithstanding anything contained in sub-section (4), where it appears to the Central Provident 
Fund  Commissioner,  whether  on  an  application  made  to  him  by  the  employer  of  an  establishment  or 
otherwise,  that  the  employer  and  majority  of  employees  of  that  establishment  have  agreed  that  the 
provisions  of  Chapter  III  should  be  made  applicable  to  that  establishment,  the  Central  Provident  Fund 
Commissioner, may, by notification, apply the provisions of the said Chapter to that establishment on and 
from the date of such agreement or from any subsequent date specified in the agreement: 

Provided that where the employer of an establishment to which the provisions of Chapter III applied 
under this sub-section desires to come out of such applicability, he may make an application to the Central 
Provident Fund Commissioner and the Central Provident Fund Commissioner shall, if satisfied that there 
is an agreement between the employer and majority of the employees to this effect, make the provisions of 
that Chapter inapplicable to such establishment, in such manner and subject to such conditions as may be 
prescribed by the Central Government. 

(6) The Central Government may, after giving not less than two months' notice of its intention so to do, 
by notification, apply the provisions of this Code to any establishment employing not less than such number 
of persons as may be specified in the notification. 

(7) Notwithstanding anything contained in sub-section (4), where it appears to the Director General of 
the Corporation, whether on an application made to him by the employer of an establishment or otherwise, 
that  the  employer  and  majority  of  employees  of  that  establishment  have  agreed  that  the  provisions  of 
Chapter IV should be made applicable to that establishment, the Director General of the Corporation, may, 
by notification, apply the provisions of the said Chapter to that establishment on and from the date of such 
agreement or from any subsequent date specified in the agreement: 

Provided that where the employer of an establishment to which the provisions of Chapter IV applied 
under this sub-section desires to come out of such applicability, he may make an application to the Director 
General  of  the  Corporation  and  Director  General  of  the  Corporation  shall,  if  satisfied  that  there  is  an 

1. 3rd May, 2021- S. 142, vide notification No. S.O. 1730(E), dated 30th April, 2021, see Gazette of India, Extraordinary, Part II, 
sec. 3(ii). 

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agreement between the employer and majority of the employees to this effect, make the provisions of that 
Chapter  inapplicable  to  such  establishment,  in  such  manner  and  subject  to  such  conditions  as  may  be 
prescribed by the Central Government. 

(8)  Notwithstanding  anything  contained  in  sub-section  (4),  an  establishment  to  which  any  Chapter 
applies at the first instance shall continue to be applied thereafter even if the number of employees therein 
at any subsequent time falls below the threshold specified in the First Schedule in respect of that Chapter. 

2. Definitions.— In this Code, unless the context otherwise requires,— 

(1) “agent” when used in relation to an establishment, means every person, whether appointed as such 
or  not,  who  acting  or  purporting  to  act  on  behalf  of  the  owner,  takes  part  in  the  management,  control, 
supervision or direction of such establishment or part thereof; 

(2)  “aggregator”  means  a digital  intermediary  or  a  market  place for a  buyer  or user  of  a  service  to 

connect with the seller or the service provider; 

(3) “appropriate Government” means— 

(a) in relation to, an establishment carried on by or under the authority of the Central Government 
or concerning any such controlled industry as may be specified by notification in this behalf, by the 
Central Government or the establishment of railways including metro railways, mines, oil field, major 
ports, air transport service, telecommunication, banking and insurance company or a corporation or 
other  authority  established  by  a  Central  Act  or  the  central  public  sector  undertaking  or  subsidiary 
companies set up by the central public sector undertakings, subsidiary companies set up by the principal 
undertakings  or  autonomous  bodies  owned  or  controlled  by  the  Central  Government,  including 
establishment  of  contractors  for  the  purposes  of  such  establishment,  corporation  or  other  authority, 
central  public  sector  undertakings,  subsidiary  companies  or  autonomous  bodies  or  any  company  in 
which not less than fifty-one per cent. of the paid up share capital is held by the Central Government, 
as the case may be, or in relation to an establishment having departments or branches in more than one 
State, as the case may be, the Central Government; and 

(b) in relation to any other establishment, the State Government. 

Explanation 1.—For the purposes of this clause, the expression “metro railway” means the metro 
railway as defined in sub-clause (i) of clause (1) of section 2 of the Metro Railways (Operation and 
Maintenance ) Act, 2002 (60 of 2002). 

Explanation 2.—For the purposes of this clause, the Central Government shall continue to be the 
appropriate Government for the central public sector undertakings even if the holding of the Central 
Government  reduces  to  less  than  fifty  per  cent.  equity  in  that  public  sector  undertaking  after  the 
commencement of this Code; 

(4) “audio-visual production” means audio-visual produced wholly or partly in India and includes— 

(i) animation, cartoon depiction, audio-visual advertisement; 

(ii) digital production or any of the activities in respect of making thereof; and 

(iii) features films, non-feature films, television, web-based serials, talk shows, reality shows and 

sport shows; 

(5)  “Authorised  Officer”  means  such  officer  of  the  Central  Board,  or  as  the  case  may  be,  of  the 

Corporation notified by the Central Government; 

(6) “building or other construction work” means the construction, alteration, repairs, maintenance or 
demolition  in  relation  to  buildings,  streets,  roads,  railways,  tramways,  airfields,  irrigation,  drainage, 
embankment  and  navigation  works,  flood  control  works  (including  storm  water  drainage  works), 
generation,  transmission  and  distribution  of  power,  water  works  (including  channels  for  distribution  of 
water),  oil  and  gas  installations,  electric  lines,  internet  towers,  wireless,  radio,  television,  telephone, 
telegraph and overseas communications, dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts, 
aquaducts, pipelines, towers, cooling towers, transmission towers and such other work as may be specified 
in  this  behalf  by  the  Central  Government,  by  notification,  but  does  not  include  any  building  or  other 

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construction  work  which  is  related  to  any  factory  or  mine  or  any  building  or  other  construction  work 
employing less than ten workers in the preceding twelve months or where such work is related to own 
residential purposes of an individual or group of individuals for their own residence and the total cost of 
such work does not exceed fifty lakhs rupees or such higher amount and employing more than such number 
of workers as may be notified by the appropriate Government; 

(7) “building worker” means a person who is employed to do any skilled, semi-skilled or unskilled, 
manual, technical or clerical work for hire or reward, whether the terms of such employment are express or 
implied, in connection with any building or other construction work, but does not include any such person 
who is employed mainly in a managerial or supervisory or administrative capacity; 

(8)  “Building  Workers'  Welfare  Board”  means  the  State  Building  and  other  Construction  Workers' 

Welfare Board constituted under sub-section (1) of section 7; 

(9) “career centre” means any office (including employment exchange, place or portal) established and 
maintained  in  the  manner  prescribed  by  the  Central  Government  for  providing  such  career  services 
(including  registration,  collection  and  furnishing  of  information,  either  by  the  keeping  of  registers  or 
otherwise, manually, digitally, virtually or through any other mode) as may be prescribed by the Central 
Government, which may, inter alia, relate generally or specifically to— 

(i) persons who seek to employ employees; 

(ii) persons who seek employment; 

(iii) occurrence of vacancies; and 

(iv)  persons  who  seek  vocational  guidance  and  career  counselling  or  guidance  to  start  self-

employment; 

(10) “Central Board” means the Board of Trustees of the Employees' Provident Fund constituted under 

section 4; 

(11) “Central Provident Fund Commissioner” means the Central Provident Fund Commissioner of the 

Central Board appointed under sub-section (1) of section 14; 

(12) “child”, for the purposes of Chapter VI, includes a stillborn child; 

(13)  “Commissioning  mother”  means  a  biological  mother  who  uses  her  egg  to  create  an  embryo 

implanted in any other woman; 

(14) “company” means a company as defined in clause (20) of section 2 of the Companies Act, 2013 

(18 of 2013); 

(15) “compensation” means compensation as provided under Chapter VII; 

(16) “competent authority” means any authority appointed under section 58 for the purposes of Chapter 
V or notified for the purposes of Chapter VI or appointed under section 91 for the purposes of Chapter VII, 
as the case may be, as competent authority by the appropriate Government or the State Government, as the 
case may be; 

(17) “completed year of service” means continuous service for twelve months; 

(18)  “confinement”  means  labour  resulting  in  the issue  of  a  living  child,  or labour  after  twenty-six 

weeks of pregnancy resulting in the issue of a child whether alive or dead; 

(19) “contract labour” means a worker who shall be deemed to be employed in or in connection with 
the work of an establishment when he is hired in or in connection with such work by or through a contractor, 
with or without the knowledge of the principal employer and includes inter-State migrant worker but does 
not include an employee (other than part time employee) who is regularly employed by the contractor for 
any activity of his establishment and his employment is governed by mutually accepted standards of the 
conditions of employment (including engagement on permanent basis), and gets periodical increment in the 
pay, social security coverage and other welfare benefits in accordance with the law for the time being in 
force in such employment; 

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(20) “contractor”, in relation to an establishment means a person, who— 

(i) undertakes to produce a given result for the establishment, other than a mere supply of goods or 

articles of manufacture to such establishment through contract labour; or 

(ii) supplies contract labour for any work of the establishment as mere human resource, and includes 

a sub-contractor; 

(21) “contribution” means the sum of money payable by the employer, under this Code, to the Central 
Board and to the Corporation, as the case may be, and includes any amount payable by or on behalf of the 
employee in accordance with the provisions of this Code; 

(22) “Corporation” means the Employees' State Insurance Corporation constituted under section 5; 

(23) “delivery” means the birth of a child; 

(24) “dependant” means any of the following relatives of deceased employee, namely:— 

(a) a widow, a minor legitimate or adopted son, an unmarried legitimate or adopted daughter or a 

widowed mother: 

Provided that for the purposes of Chapter IV, a legitimate adopted son, who has not attained the age of 

twenty-five years, shall be dependant of the deceased employee; 

(b) if wholly dependant on the earnings of the employee at the time of his death, a legitimate or adopted 
son or a daughter who has attained the age of eighteen years and who is infirm; except for the purposes of 
Chapter  IV  wherein  the  word  “eighteen”  occurring  in  this  sub-clause  shall  be  deemed  to  have  been 
substituted by the word “twenty-five”; 

(c) if wholly or in part dependent on the earnings of the employee at the time of his death,— 

(i) a widower; 

(ii) a parent other than a widowed mother; 

(iii)  a  minor  illegitimate  son,  an  unmarried  illegitimate  daughter  or  a  daughter  legitimate  or 

illegitimate or adopted if married and a minor or if widowed and a minor; 

(iv) a minor brother or an unmarried sister or a widowed sister if a minor; 

(v) a widowed daughter-in-law; 

(vi) a minor child of a pre-deceased son; 

(vii) a minor child of a pre-deceased daughter where no parent of the child is alive, or; 

(viii) a grandparent if no parent of the employee is alive. 

Explanation.—For the purposes of sub-clause (b) and items (vi) and (vii) of sub-clause (c), references 

to a son, daughter or child include an adopted son, daughter or child, respectively; 

(25) “dock work” means any work in or within the vicinity of any port in connection with, or required 
for, or incidental to, the loading, unloading, movement or storage of cargoes into or from ship or other 
vessel, port, dock, storage place or landing place, and includes— 

(i) work in connection with the preparation of ships or other vessels for receipt or discharge of 

cargoes or leaving port; 

(ii)  all  repairing  and  maintenance  processes  connected  with  any  hold,  tank  structure  or  lifting 

machinery or any other storage area on board the ship or in the docks; and 

(iii) chipping, painting or cleaning of any hold, tank, structure or lifting machinery or any other 

storage area in board the ship or in the docks; 

(26) “employee” means any person (other than an apprentice engaged under the Apprentices Act, 1961) 
(52 of 1961) employed on wages by an establishment, either directly or through a contractor, to do any 
skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical, 

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clerical or any other work, whether the terms of employment be express or implied, and also includes a 
person declared to be an employee by the appropriate Government, but does not include any member of the 
Armed Forces of the Union: 

Provided that for the purposes of Chapter III, except in case of the Employees’ Provident Fund Scheme 
and Chapter IV, the term “employee” shall mean such employee drawing wages less than or equal to the 
wage ceiling notified by the Central Government and includes such other persons or class of persons as the 
Central Government may by notification, specify to be employee, for the purposes of those Chapters: 

Provided further that for the purposes of counting of employees for the coverage of an establishment 
under Chapter III and Chapter IV, as the case may be, the employees, whose wages are more than the wage 
ceiling so notified by the Central Government, shall also be taken into account: 

Provided also that for the purposes of Chapter VII, the term “employee” shall mean only such persons 
as specified in the Second Schedule and such other persons or class of persons as the Central Government, 
or as the case may be, the State Government may add to the said Schedule, by notification, for the purposes 
of that Government; 

(27) “employer” means a person who employs, whether directly or through any person, or on his behalf, 
or on behalf of any person, one or more employees in his establishment and where the establishment is 
carried on by any department of the Central Government or the State Government, the authority specified, 
by  the  head  of  such  department,  in  this  behalf  or  where  no  authority  is  so  specified,  the  head  of  the 
department and in relation to an establishment carried on by a local authority, the chief executive of that 
authority, and includes,— 

(a) in relation to an establishment which is a factory, the occupier of the factory; 

(b) in relation to mine, the owner of the mine or agent or manager having requisite qualification 

under the law for the time being in force and appointed by the owner or agent of the mine as such; 

(c)  in  relation  to  any  other  establishment,  the  person  who,  or  the  authority  which  has  ultimate 
control over the affairs of the establishment and where the said affairs are entrusted to a manager or 
managing director, such manager or managing director; 

(d) contractor; and 

(e) legal representative of a deceased employer; 

(28)  “employment  injury”  means  a  personal  injury  to  an  employee,  caused  by  accident  or  an 

occupational disease, as the case may be, arising out of and in the course of his employment,— 

(i) for the purposes of Chapter IV, if the employee is an insured or insurable employee under section 
28  whether  such  accident  occurs  or  the  occupational  disease  is  contracted  within  or  outside  the 
territorial limits of India; and 

(ii) for the purposes of Chapter VII, whether such accident occurs or the occupational disease is 

contracted within or outside the territorial limits of India; 

(29) “establishment” means— 

(a) a place where any industry, trade, business, manufacture or occupation is carried on; or 

(b)  a  factory,  motor  transport  undertaking,  newspaper  establishment,  audiovisual  production, 

building and other construction work or plantation; or 

(c) a mine, port or vicinity of port where dock work is carried out. 

Explanation.—For  the  purposes  of  Chapter  III,  where  an  establishment  consists  of  different 
departments or has branches, whether situate in the same place or in different places, all such departments 
or branches shall be treated as parts of the same establishment; 

(30) “executive officer” means such officer of the appropriate Government as may be notified by that 
Government for the purposes of Chapter XIII or an officer authorised in writing by such executive officer 
to discharge his duties under that Chapter; 

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(31) “exempted employee” for the purposes of Chapter III, means an employee to whom any of the 
schemes referred to in section 15, but for the exemption granted under this Code, would have applied and 
for the purposes of Chapter IV, means an employee, whose wage is specified in the notification by the 
Central Government and who is not liable to pay employee's contribution; 

(32) “factory” means any premises including the precincts thereof— 

(a) whereon ten or more employees are working, or were  working on any day of the preceding 
twelve months, and in any part of which a manufacturing process is being carried on with the aid of 
power, or is ordinarily so carried on, or 

(b) whereon twenty or more employees are working, or were working on any day of the preceding 
twelve months, and in any part of which a manufacturing process is being carried on without the aid of 
power, or is ordinarily so carried on, but does not include a mine, or a mobile unit belonging to the 
Armed Forces of the Union, railways running shed or a hotel, restaurant or eating place. 

Explanation  1.—For  computing  the  number  of  employees  for  the  purposes  of  this  clause,  all  the 

employees in (different groups and relays) a day shall be taken into account. 

Explanation 2.—For the purposes of this clause, the mere fact that an Electronic Data Processing Unit 
or  a  Computer  Unit  is  installed  in  any  premises  or  part  thereof,  shall  not  be  construed  as  factory  if  no 
manufacturing process is being carried on in such premises or part thereof; 

(33) “family” means all or any of the following relatives of an employee or an unorganised worker, as 

the case may be, namely:— 

(a) a spouse; 

(b) a minor legitimate or adopted child dependent upon the employee or an unorganised worker, as 

the case may be; 

(c) a child who is wholly dependent on the earnings of the employee or an unorganised worker, as 

the case may be, and who is— 

(i) receiving education, till he attains the age of twenty-one years; and 

(ii) an unmarried daughter; 

(d) a child who is infirm by reason of any physical or mental abnormality or injury and is wholly 
dependent on the earnings of the employee or an unorganized worker, as the case may be, so long as 
the infirmity continues; 

(e) dependent parents (including father-in-law and mother-in-law of a woman employee), whose 
income from all sources does not exceed such income as may be prescribed by the Central Government; 

(f) in case the employee or an unorganised worker, as the case may be, is unmarried and his parents 

are not alive, a minor brother or sister wholly dependent upon the earnings of the Insured Person; 

(34) “fixed term employment” means the engagement of an employee on the basis of a written contract 

of employment for a fixed period: 

Provided that— 

(a) his hours of work, wages, allowances and other benefits shall not be less than that of a permanent 

employee doing the same work or work of a similar nature; and 

(b) he shall be eligible for all benefits, under any law for the time being in force, available to a 
permanent employee proportionately according to the period of service rendered by him even if his 
period of employment does not extend to the required qualifying period of employment; 

(35) “gig worker” means a person who performs work or participates in a work arrangement and earns 

from such activities outside of traditional employer-employee relationship; 

11 

 
(36)  “home-based  worker”  means  a  person  engaged  in,  the  production  of  goods  or  services  for  an 
employer  in  his  home  or  other  premises  of  his  choice  other  than  the  workplace  of  the  employer,  for 
remuneration, irrespective of whether or not the employer provides the equipment, materials or other inputs; 

(37) “Inspector-cum-Facilitator” means an Inspector-cum-Facilitator appointed under section 122; 

(38)  “Insurance  Fund”  means  the  Deposit-Linked  Insurance  Fund  established  under  clause  (c)  of  

sub-section (1) of section 16; 

(39) “Insured Person” means the Insured Person referred to in section 28; 

(40) “Insurance Scheme” means the Deposit-Linked Insurance Scheme framed under clause (c) of sub-

section (1) of section 15; 

(41) “inter-State migrant worker” means a person who is employed in an establishment and who— 

(i) has been recruited directly by the employer or indirectly through contractor in one State for 

employment in such establishment situated in another State; or 

(ii) has come on his own from one State and obtained employment in an establishment of another 
State (hereinafter called destination State) or has subsequently changed the establishment within the 
destination State, under an agreement or other arrangement for such employment and drawing wages 
not exceeding eighteen thousand rupees per month or such higher amount as may be notified by the 
Central Government from time to time; 

(42)  “manufacturing  process”  means  any  process  for—(i)  making,  altering,  repairing,  ornamenting, 
finishing, oiling, washing, cleaning, breaking up, demolishing, refining, or otherwise treating or adapting 
any article or substance with a view to its use, sale, transport, delivery or disposal; or 

(ii) pumping oil, water, sewage or any other substance; or 

(iii) generating, transforming or transmitting power; or 

(iv) composing, offset printing, printing by letter press, lithography, photogravure screen printing, 
three or four dimensional printing, prototyping, flexography or other types of printing process or book 
binding; or 

(v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or 

(vi) preserving or storing any article in cold storage; or 

(vii) such other activities as the Central Government may notify; 

(43) “maternity benefit”, in respect of Chapter VI, means the payment referred to in sub-section (1) of 

section 60; 

(44) “medical practitioner” means a person registered under any law for the time being in force, or, any 
person declared by the State Government, by notification, to be qualified as medical practitioner for the 
purposes of this Code: 

Provided that  different  class  or  classes of  medical practitioner  having  specific qualification  may  be 
notified by the Central Government for the purposes of Chapter IV and by the appropriate Government for 
other Chapters of this Code; 

(45) “medical termination of pregnancy” means the termination of pregnancy permissible under the 

provisions of the Medical Termination of Pregnancy Act, 1971 (34 of 1971); 

(46) “mine” shall have the meaning assigned to it in clause (j) of sub-section (1) of section 2 of the 

Mines Act, 1952 (35 of 1952); 

(47) “minor” means a person who has not attained the age of eighteen years; 

(48) “miscarriage” means expulsion of the contents of a pregnant uterus at any period prior to or during 
the  twenty-sixth  week  of  pregnancy,  but  does  not  include  any  miscarriage,  the  causing  of  which  is 
punishable under the Indian Penal Code (45 of 1860); 

12 

 
(49)  “National  Social  Security  Board”  means  the  National  Social  Security  Board  for  Unorganised 

Workers constituted under sub-section (1) of section 6; 

(50) “notification” means a notification published in the Gazette of India or the Official Gazette of a 
State,  as  the  case  may  be,  and  the  expression  “notify”  with  its  grammatical  variations  and  cognate 
expressions shall be construed accordingly; 

(51) “occupational disease” means a disease specified in the Third Schedule as a disease peculiar to the 

employment of the employee; 

(52) “occupier” in respect of a factory means the person who has ultimate control over the affairs of 

the factory: 

Provided that— 

(a) in the case of a firm or other association of individuals, any one of the individual partners or 

members thereof; 

(b) in the case of a company, any one of the directors, except any independent director within the 

meaning of sub-section (6) of section 149 of the Companies Act, 2013 (18 of 2013); 

(c)  in  the  case  of  a  factory  owned  or  controlled  by  the  Central  Government  or  any  State 
Government, or any local authority, the person or persons appointed to manage the affairs of the factory 
by the Central Government, the State Government or the local authority or such other authority as may 
be prescribed by the Central Government,  

shall be deemed to be the occupier: 

Provided further that in the case of a ship which is being repaired, or on which maintenance work is 
being carried out, in a dry dock which is available for hire, the owner of the dock shall be deemed to be the 
occupier for all purposes except the matters as may be prescribed by the Central Government which are 
directly related to the condition of ship for which the owner of ship shall be deemed to be the occupier; 

(53) “oilfield” shall have the meaning assigned to it in clause (e) of section 3 of the Oilfields (Regulation 

and Development) Act, 1948 (53 of 1948); 

(54) “organised sector” means an enterprise which is not an unorganised sector; 

(55)  “permanent  partial  disablement”  means,  where  the  disablement  is  of  a  permanent  nature,  such 
disablement as reduces the earning capacity of an employee in every employment which he was capable of 
undertaking at the time of the accident resulting in the disablement: 

Provided  that  every  injury  specified  in  Part  II  of  the  Fourth  Schedule  shall  be  deemed  to  result  in 

permanent partial disablement; 

(56) “permanent total disablement” means such disablement of a permanent nature as incapacitates an 
employee for all work which he was capable of performing at the time of the accident resulting in such 
disablement: 

Provided that permanent total disablement shall be deemed to result from every injury specified in Part 
I of the Fourth Schedule or from any combination of injuries specified in Part II thereof where the aggregate 
percentage of the loss of earning capacity, as specified in the said Part II against those injuries, amounts to 
one hundred per cent.; 

(57) “Pension Fund” means the Pension Fund established under clause (b) of sub-section (1) of section 

16; 

(58) “Pension Scheme” means the Employees' Pension Scheme framed under clause (b) of sub-section 

(1) of section 15; 

(59) “plantation” means— 

(a) any land used or intended to be used for— 

(i) growing tea, coffee, rubber, cinchona or cardamom which admeasures five hectares or more; 

13 

 
(ii) growing any other plant, which admeasures five hectares or more and in which ten or more 
persons  are  employed  or  were  employed  on  any  day  of  the  preceding  twelve  months,  if,  after 
obtaining  the  approval  of  the  Central  Government,  the  State  Government,  by  notification,  so 
directs. 

Explanation.—Where  any  piece  of  land  used  for  growing  any  plant  referred  to  in  this  sub-clause 
admeasures  less  than  five  hectares  and  is  contiguous  to  any  other  piece  of  land  not  being  so  used,  but 
capable of being so used, and both such pieces of land are under the management of the same employer, 
then, for the purposes of this sub-clause, the piece of land first mentioned shall be deemed to be a plantation, 
if the total area of both such pieces of land admeasures five hectares or more; 

(b)  any  land  which  the  State  Government  may,  by  notification,  declare  and  which  is  used  or 
intended  to  be  used  for  growing  any  plant  referred  to  in  sub-clause  (a),  notwithstanding  that  it 
admeasures less than five hectares: 

Provided that no such declaration shall be made in respect of such land which admeasures less than five 

hectares immediately before the commencement of this Code; and 

(c) offices, hospitals, dispensaries, schools and any other premises used for any purpose connected with 
any plantation within the meaning of sub-clause (a) and sub-clause (b); but does not include factory on the 
premises; 

(60)  “platform  work”  means  a  work  arrangement  outside  of  a  traditional  employer  employee 
relationship in which organisations or individuals use an online platform to access other organisations or 
individuals to solve specific problems or to provide specific services or any such other activities which may 
be notified by the Central Government, in exchange for payment; 

(61) “platform worker” means a person engaged in or undertaking platform work; 

(62) “port” shall have the meaning assigned to it in clause (4) of section 3 of the Indian Ports Act, 1908 

(15 of 1908); 

(63)  “Provident  Fund”  means  the  Employees'  Provident  Fund  established  under  clause  (a)  of  

sub-section (1) of section 16; 

(64) “Provident Fund Scheme” means the Employees' Provident Fund Scheme framed under clause (a) 

of sub-section (1) of section 15; 

(65) “prescribed” means prescribed by rules made under this Code; 

(66) “railway” shall have the meaning assigned to it in clause (31) of section 2 of the Railways Act, 

1989 (24 of 1989); 

(67) “railway company” includes any persons whether incorporated or not, who are owners or lessees 

of a railway or parties to an agreement for working a railway; 

(68)  “Recovery  Officer”  means  any  officer  of  the  Central  Government,  the  State  Government,  the 
Central  Board  or  the  Corporation,  who  may  be  authorised  by  the  Central  Government  or  the  State 
Government, as the case may be, by notification, to discharge the functions and to exercise the powers of a 
Recovery Officer under this Code; 

(69) “regulations” means regulations made by the Corporation under this Code; 

(70) “retirement” means termination of the service of an employee otherwise than on superannuation; 

(71) “sales promotion employees” means the sales promotion employees as defined in clause (d) of 

section 2 of the Sales Promotion Employees (Conditions of Service) Act, 1976 (11 of 1976); 

(72) “Schedule” means a Schedule to this Code; 

(73) “seamen” means any person forming part of the crew of any ship, but does not include the master 

of the ship; 

(74) “seasonal factory “ means a factory which is exclusively engaged in one or more of the following 
manufacturing processes, namely, cotton ginning, cotton or jute pressing, decortication of ground-nuts, the 

14 

 
manufacture of indigo, lac, sugar (including gur) or any manufacturing process which is incidental to or 
connected with any of the aforesaid processes and includes a factory which is engaged for a period not 
exceeding  seven  months  in  a  year  in  a  manufacturing  process  as  the  Central  Government  may,  by 
notification, specify; 

(75)  “self-employed  worker”  means  any  person  who is  not  employed  by  an  employer,  but  engages 
himself in any occupation in the unorganised sector subject to a monthly earning of an amount as may be 
notified by the Central Government or the State Government, as the case may be, from time to time or holds 
cultivable land subject to such ceiling as may be notified by the State Government; 

(76) “shop”, in respect of a State, means a shop as defined in any law for the time being in force dealing 

with the shop in that State; 

(77) “sickness” means a condition which requires medical treatment and attendance and necessitates 

abstention from work on medical ground; 

(78) “social security” means the measures of protection afforded to employees, unorganised workers, 
gig  workers  and  platform  workers  to  ensure  access  to  health  care  and  to  provide  income  security, 
particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a 
breadwinner by means of rights conferred on them and schemes framed, under this Code; 

(79) “Social Security Organisation” means any of the following organisations established under this 

Code, namely:— 

(a) the Central Board of Trustees of Employees' Provident Fund constituted under section 4; 

(b) the Employees' State Insurance Corporation constituted under section 5; 

(c) the National Social Security Board for Unorganised Workers constituted under section 6; 

(d) the State Unorganised Workers' Social Security Board constituted under section 6; 

(e) the State Building and other Construction Workers' Welfare Boards constituted under section 

7; and 

(f) any other organisation or special purpose vehicle declared to be the social security organisation 

by the Central Government; 

(80) “State Government” includes— 

(a) in relation to a Union territory with legislature, the Government of the Union territory; and 

(b) in relation to a Union territory without legislature, the administrator appointed under article 239 

of the Constitution as an administrator thereof; 

(81) “State Unorganised Workers' Board” means the State Unorganised Workers' Social Security Board 

constituted under sub-section (9) of section 6; 

(82) “superannuation”, in relation to an employee, means the attainment by the employee of such age 
as is fixed in the contract or conditions of service, as the age on the attainment of which the employee shall 
vacate the employment: 

Provided that for the purposes of Chapter III, the age of superannuation shall be fifty-eight years; 

(83) “temporary disablement” means a condition resulting from an employment injury which requires 
medical treatment and renders an employee, as a result of such injury, temporarily incapable of doing the 
work which he was doing prior to or at the time of the injury; 

(84) “Tribunal” means the Industrial Tribunal constituted by the appropriate Government under section 

7A of the Industrial Disputes Act, 1947 (14 of 1947); 

(85) “unorganised  sector” means  an  enterprise  owned  by  individuals  or  self-employed  workers  and 
engaged in the production or sale of goods or providing service of any kind whatsoever, and where the 
enterprise employs workers, the number of such workers is less than ten; 

15 

 
(86) “unorganised worker” means a home-based worker, self-employed worker or a wage worker in 
the unorganised sector and includes a worker in the organised sector who is not covered by the Industrial 
Disputes Act, 1947 or Chapters III to VII of this Code; 

(87) “vacancy”, for the purposes of Chapter XIII, means an unoccupied post (including newly created 
post, post of trainee, post to be filled through apprentice or any unoccupied post created in an establishment 
by  any  other  means)  in  a  cadre  or  occupation  for  the  purpose  of  employing  a  person  and  carrying 
remuneration; 

(88) “wages” means all remuneration, whether by way of salaries, allowances or otherwise, expressed 
in terms of money or capable of being so expressed which would, if the terms of employment, express or 
implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in 
such employment, and includes,— 

(a) basic pay; 

(b) dearness allowance; and 

(c) retaining allowance, if any, 

but does not include— 

(a)  any  bonus  payable  under  any  law  for  the  time  being  in  force,  which  does  not  form  part  of  the 

remuneration payable under the terms of employment; 

(b) the value of any house-accommodation, or of the supply of light, water, medical attendance or other 
amenity or of any service excluded from the computation of wages by a general or special order of the 
appropriate Government; 

(c) any contribution paid by the employer to any pension or provident fund, and the interest which may 

have accrued thereon; 

(d) any conveyance allowance or the value of any travelling concession; 

(e) any sum paid to the employed person to defray special expenses entailed on him by the nature of 

his employment; 

(f) house rent allowance; 

(g)  remuneration  payable  under  any  award  or  settlement  between  the  parties  or  order  of  a  court  or 

Tribunal; 

(h) any overtime allowance; 

(i) any commission payable to the employee; 

(j) any gratuity payable on the termination of employment; 

(k)  any  retrenchment  compensation  or  other  retirement  benefit  payable  to  the  employee  or  any  
ex gratia payment made to him on the termination of employment, under any law for the time being in 
force: 

Provided that for calculating the wages under this clause, if payments made by the employer to the 
employee under sub-clauses (a) to (i) exceeds one-half, or such other per cent. as may be notified by the 
Central Government, of the all remuneration calculated under this clause, the amount which exceeds such 
one-half, or the per cent. so notified, shall be deemed as remuneration and shall be accordingly added in 
wages under this clause: 

Provided further that for the purpose of equal wages to all genders and for the purpose of payment of 
wages, the emoluments specified in sub-clauses (d), (f), (g) and (h) shall be taken for computation of wage. 

Explanation.—Where an employee is given in lieu of the whole or part of the wages payable to him, 
any remuneration in kind by his employer, the value of such remuneration in kind which does not exceed 
fifteen  per  cent.  of  the  total  wages  payable  to  him,  shall  be  deemed  to  form  part  of  the  wages  of  such 
employee; 

16 

 
(89) “wage ceiling” means such amount of wages as may be notified by the Central Government, for 

the purposes of becoming a member under Chapter III and Chapter IV; 

(90) “wage worker” means a person employed for remuneration in the unorganized sector, directly by 
an employer or through any contractor, irrespective of place of work, whether exclusively for one employer 
or for one or more employers, whether in cash or in kind, whether as a home-based worker, or as a temporary 
or casual worker, or as a migrant worker, or workers employed by households including domestic workers, 
with a monthly wage of an amount as may be notified by the Central Government and the State Government, 
as the case may be; 

(91) “woman” means a woman employed, whether directly or through any contractor, for wages in any 

establishment: 

Provided that for the purposes of Chapter IV, a woman who is or was an employee in respect of whom 
contribution is or were payable under the said Chapter and who is by reason thereof, entitled to any of the 
benefits provided under the said Chapter shall be called “insured woman” and shall include— 

(i) a commissioning mother who as biological mother wishes to have a child and prefers to get 

embryo implanted in any other woman; 

(ii) a woman who legally adopts a child of up to three months of age. 

3. Registration and cancellation of an establishment.—(1) Every establishment to which this Code 
applies  shall  be  electronically  or  otherwise,  registered  within  such  time  and  in  such  manner  as  may  be 
prescribed by the Central Government: 

Provided that the establishment which is already registered under any other Central labour law for the 
time being in force shall not be required to obtain registration again under this Code and such registration 
shall be deemed to be registration for the purposes of this Code: 

(2) Any establishment to which Chapter III or Chapter IV applies, and whose business activities are in 
the process of closure, may make an application for cancellation of registration granted under this section. 

(3)  The  manner  of  making  application  for  cancellation  of  the  registration  under  sub-section  (2),  the 
conditions subject to which the registration shall be cancelled and the procedure of cancellation and other 
matters relating thereto, shall be such as may be prescribed by the Central Government. 

CHAPTER II 
SOCIAL SECURITY ORGANISATIONS 

4. Constitution of Board of Trustees of Employees’ Provident Fund.—(1) The Central Government 
may, by notification, constitute, with effect from such date as may be specified therein, a Board of Trustees 
of the Employees' Provident Fund to be called the Central Board, for the purposes of Chapter III and the 
provisions of this Code relating to that Chapter, for the administration of the funds vested in it in such 
manner as may be prescribed by the Central Government, consisting of the following members, namely:— 

(a) a Chairperson and a Vice-Chairperson to be appointed by the Central Government; 

(b) not more than five persons appointed by the Central Government from amongst its officials; 

(c) not more than fifteen persons representing Governments of such States as the Central Government 

may specify in this behalf, to be appointed by the Central Government; 

(d) ten persons representing employers of the establishments to which the schemes referred to in sub 
section (1) of section 15 applies, to be appointed by the Central Government after consultation with such 
organisations of employers as may be recognised by the Central Government in this behalf; 

(e) ten persons representing employees in the establishments to which schemes referred to in sub-
section (1) of section 15 applies, who shall be appointed by the Central Government after consultation 
with such organisations of employees as may be recognised by that Government in this behalf; and 

(f) the Central Provident Fund Commissioner, ex officio. 

17 

 
 
(2) The Central Board shall be a body corporate by the name of Board of Trustees of the Employees' 
Provident Fund, having perpetual succession and a common seal and shall by the said name sue and be 
sued. 

(3)  The  Central  Government  may,  by  notification,  constitute,  with  effect  from  such  date  as  may  be 
specified therein, an Executive Committee from amongst the members of the Central Board to assist the 
Central  Board  in  performance  of  its  functions  in  such  manner  as  may  be  prescribed  by  the  Central 
Government. 

(4) The Central Board may, by order, constitute one or more committees of such composition as may be 

specified in the order to assist it in the discharge of its functions. 

(5) The Central Board may, by order, delegate to its Chairperson or to its Executive Committee or to 
any of its officers and a State Board constituted under section 12 may, by order, delegate to its Chairperson 
or to any of its officers, subject to such conditions and limitations, if any, as it may specify in such order, 
such of its powers and functions under this Code as it may deem necessary for efficient administration of 
the schemes referred to in sub-section (1) of section 15. 

(6) The terms and conditions, including tenure of office, subject to which a member of the Central Board 
and Executive Committee shall discharge their respective duties may be such as may be prescribed by the 
Central Government: 

Provided that a member of the Central Board shall, notwithstanding the expiry of the tenure of his office, 

continue to hold office until his successor is appointed. 

(7) The Central Board, apart from the functions specified in this Code, shall also perform such other 

functions in such manner as may be prescribed by the Central Government. 

5. Constitution of Employees’ State Insurance Corporation.— (1) The Central Government may, by 
notification,  constitute  with  effect  from  such  date  as  may  be  specified  therein,  the  Employees'  State 
Insurance Corporation to be called the Corporation, for the purposes of Chapter IV and the provisions of 
this Code relating to that Chapter and the administration thereof, in such manner as may be prescribed by 
the Central Government, consisting of the following members, namely:— 

(a) a Chairperson to be appointed by the Central Government; 

(b) a Vice-Chairperson to be appointed by the Central Government; 

(c) not more than five persons to be appointed by the Central Government from amongst its officials; 

(d) one person representing each of such States in such manner, as may be prescribed by the Central 

Government; 

(e) one person to be appointed by the Central Government to represent the Union territories; 

(f) ten persons representing employers to be appointed by the Central Government in consultation 
with such organisations of employers as may be recognised for the purpose by the Central Government; 

(g) ten persons representing employees to be appointed by the Central Government in consultation 
with such organisations of employees as may be recognised for the purpose by the Central Government; 

(h) two persons representing the medical profession to be appointed by the Central Government in 
consultation with such organisations of medical practitioners as may be recognised for the purpose by 
the Central Government; 

(i) three members of Parliament of whom two shall be members of the House of the People (Lok 
Sabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively by the 
members of the House of the People and the members of the Council of States; and 

(j) the Director General of the Corporation, ex officio. 

(2) The Corporation shall be a body corporate by the name of Employees' State Insurance Corporation, 

having perpetual succession and a common seal and shall by the said name sue and be sued. 

18 

 
(3) The Central Government may, by notification, constitute, with effect from such date as may be 
specified therein, a Standing Committee from amongst the members of the Corporation, in such manner 
as may be prescribed by the Central Government. 

(4) Subject to the general superintendence and control of the Corporation, the Standing Committee— 

(a) shall administer the affairs of the Corporation and may exercise any of the powers and perform 
any of the functions of the Corporation in such manner as may be prescribed by the Central Government; 

(b) shall submit for the consideration and decision of the Corporation all such cases and matters as 

may be specified in the regulations made in this behalf; and 

(c) may, in its discretion, submit any other case or matter for the decision of the Corporation. 

(5) (a) The Central Government may, by notification, constitute, with effect from such date as may be 
specified therein, a Medical Benefit Committee of such composition as may be specified therein, to assist 
the Corporation and the Standing Committee in performance of its functions relating to administration of 
medical benefits. 

(b)  the  Medical  Benefit  Committee  shall  perform  such  duties  and  exercise  such  powers  as  may  be 

prescribed by the Central Government. 

(6) The Corporation may, by order, constitute one or more committees of such composition as may be 

specified in the regulations to assist it in the discharge of its functions. 

(7) The terms and conditions, including tenure of office, subject to which a member of the Corporation 
and Standing Committee shall discharge their respective duties may be such as may be prescribed by the 
Central Government: 

Provided that a member of the Corporation shall, notwithstanding the expiry of the tenure of his office, 

continue to hold office until his successor is appointed. 

6.  National  Social  Security  Board  and  State  Unorganised  Workers’  Board.—(1)  The  Central 
Government shall, by notification, constitute a National Social Security Board for unorganised workers to 
exercise the powers conferred on, and to perform the functions assigned to, it under this Code, in such 
manner as may be prescribed by the Central Government. 

(2) The National Social Security Board shall consist of the following members, namely:— 

(a) Union Minister for Labour and Employment as Chairperson; 

(b) Secretary, Ministry of Labour and Employment as Vice-Chairperson; 

(c) forty members to be nominated by the Central Government, out of whom— 

(i) seven members representing unorganised sector workers; 

(ii) seven members representing employers of unorganised sector; 

(iii) seven members representing eminent persons from civil society; 

(iv) two members representing the Lok Sabha and one from the Rajya Sabha; 

(v) ten members representing Central Government Ministries and Departments concerned; 

(vi) five members representing State Governments; 

(vii) one member representing the Union territories; and 

(d) the Director General Labour Welfare, as Member-Secretary, ex officio. 

(3)  All  members  except  Chairperson  of  the  National  Social  Security  Board  shall  be  from  amongst 

persons of eminence in the fields of labour welfare, management, finance, law and administration. 

(4) The manner in which members shall be nominated from each of the categories specified in clause 
(c) of sub-section (2), the term of office and other conditions of service of members, the procedure to be 

19 

 
followed in the discharge of their functions by, and the manner of filling vacancies among the members of, 
the National Social Security Board shall be such as may be prescribed by the Central Government: 

Provided that adequate representation shall be given to persons belonging to the Scheduled Castes, the 

Scheduled Tribes, the minorities and women. 

(5) The term of the National Social Security Board shall be three years. 

(6) The National Social Security Board shall meet at least thrice a year, at such time and place and shall 
observe such rules of procedure relating to the transaction of business at its meetings, as may be prescribed 
by the Central Government. 

(7) The National Social Security Board shall perform the following functions, namely:— 

(a) recommend  to  the  Central  Government for framing  suitable  schemes  for  different  sections  of 

unorganised workers, gig workers and platform workers; 

(b) advise the Central Government on such matters arising out of the administration of this Code as 

may be referred to it; 

(c) monitor such social welfare schemes for unorganised workers, gig workers and platform workers 

as are administered by the Central Government; 

(d) review the record keeping functions performed at the State level; 

(e) review the expenditure from the fund and account; and 

(f) undertake such other functions as are assigned to it by the Central Government from time to time. 

(8)  The  Central  Government  may,  by  notification,  constitute  with  effect  from  such  date  as  may  be 
specified therein one or more advisory committee to advise the Central Government upon such matters 
arising out of the administration of this Code relating to unorganised workers and such other matters as the 
Central Government may refer to it for advice. 

(9) Every State Government shall, by notification, constitute a State Board to be known as (name of the 
State) Unorganised Workers' Social Security Board to exercise the powers conferred on, and to perform the 
functions assigned to, it under this Code, in such manner as may be prescribed by the State Government. 

(10) Every State Unorganised Workers' Board shall consist of the following members, namely:— 

(a) Minister of Labour and Employment of the concerned State as Chairperson, ex officio; 

(b) Principal Secretary or Secretary (Labour) as Vice-Chairperson; 

(c) one member representing the Central Government in the Ministry of Labour and Employment; 

(d) thirty-one members to be nominated by the State Government, out of whom— 

(i) seven representing the unorganised workers; 

(ii) seven representing employers of unorganised workers; 

(iii) two members representing the Legislative Assembly of the concerned State; 

(iv) five members representing eminent persons from civil society; 

(v) ten members representing the State Government Departments concerned; and 

(e) Member-Secretary as notified by the State Government. 

(11) All members except Chairperson of the State Unorganised Workers' Board shall be from amongst 

persons of eminence in the fields of labour welfare, management, finance, law and administration. 

(12) The manner in which members shall be nominated from each of the categories specified in clause 
(d) of sub-section (10), the term of office and other conditions of service of members, the procedure to be 
followed in the discharge of their functions by, and the manner of filling vacancies among the members of, 
the State Unorganised Workers' Board shall be such as may be prescribed by the State Government: 

20 

 
Provided that adequate representation shall be given to persons belonging to the Scheduled Castes, the 

Scheduled Tribes, the minorities and women. 

(13) The term of the State Unorganised Workers' Board shall be three years. 

(14) The State Unorganised Workers' Board shall meet at least once in a quarter at such time and place 
and shall observe such rules of procedure relating to the transaction of business at its meetings, as may be 
prescribed by the State Government. 

(15) The State Board shall perform the following functions, namely:— 

(a)  recommend  the  State  Government  for  framing  suitable  schemes  for  different  sections  of  the 

unorganised sector workers; 

(b) advise the State Government on such matters arising out of the administration of this Code as 

may be referred to it; 

(c) monitor such social welfare schemes for unorganised workers as are administered by the State 

Government; 

(d) review the record keeping functions performed at the district level; 

(e) review the progress of registration and issue of cards to unorganised sector workers; 

(f) review the expenditure from the funds under various schemes; and 

(g) undertake such other functions as are assigned to it by the State Government from time to time. 

(16)  The  State  Government  may,  by  notification,  constitute  with  effect  from  such  date  as  may  be 
specified therein, one or more advisory committee to advise the State Government upon such matters arising 
out of the administration of this Code relating to unorganised workers and such other matters as the State 
Government may refer to it for advice. 

7.  Constitution  of  State Building  Workers’  Welfare Boards.—(1)  Every  State  Government  shall, 
with  effect  from  such  date  as  it  may,  by  notification,  appoint,  constitute  a  Board  to  be  known  as 
the................(name of the State) Building and Other Construction Workers' Welfare Board to exercise the 
powers conferred on, and perform the functions assigned to, it under this section and Chapter VIII. 

(2)  The  Building  Workers'  Welfare  Board  shall  be  a  body  corporate  by  the  name  aforesaid,  having 

perpetual succession and a common seal and shall by the said name sue and be sued. 

(3) The Building Workers' Welfare Board shall consist of a chairperson to be nominated by the State 
Government, one member to be nominated by the Central Government and such number of other members, 
not exceeding fifteen, as may be appointed to it by the State Government: 

Provided  that  the  Building  Workers'  Welfare  Board  shall  include  an  equal  number  of  members 
representing the State Government, the employers and the building workers and that at least one member 
of the Board shall be a woman. 

(4)  The  terms  and  conditions  of  appointment  and  the  salaries  and  other  allowances  payable  to  the 
chairperson and the other members of the Building Workers' Welfare Board, and the manner of filling of 
casual  vacancies  of  the  members  of  the  Building  Workers'  Welfare  Board,  shall  be  such  as  may  be 
prescribed by the State Government. 

(5) (a) The Building Workers' Welfare Board shall appoint a Secretary and such officers and employees 

as it considers necessary for the efficient discharge of its functions under this Code. 

(b) The Secretary of the Building Workers' Welfare Board shall be its chief executive officer. 

(c) The terms and conditions of appointment and the salary and allowances payable to the Secretary and 
the other officers and employees of the Building Workers' Welfare Board shall be such as may be prescribed 
by the State Government. 

(6) The Building Workers' Welfare Board shall perform the following functions, namely:— 

(a) provide death and disability benefits to a beneficiary or his dependants; 

21 

 
(b) make payment of pension to the beneficiaries who have completed the age of sixty years; 

(c) pay such amount in connection with premium for Group Insurance Scheme of the beneficiaries 

as may be prescribed by the appropriate Government; 

(d) frame educational schemes for the benefit of children of the beneficiaries as may be prescribed 

by the appropriate Government; 

(e) meet such medical expenses for treatment of major ailments of a beneficiary or, such dependant, 

as may be prescribed by the appropriate Government; 

(f) make payment of maternity benefit to the beneficiaries; 

(g) frame skill development and awareness schemes for the beneficiaries; 

(h) provide transit accommodation or hostel facility to the beneficiaries; 

(i)  formulation  of  any  other  welfare  scheme  for  the  building  worker  beneficiaries  by  State 

Government in concurrence with the Central Government; and 

(j)  make  provision  and  improvement  of  such  other  welfare  measures  and  facilities  as  may  be 

prescribed by the Central Government. 

(7) The State Government may, by notification, constitute with effect from such date as may be specified 
therein one or more advisory committee to advise the State Government upon such matters arising out of 
the administration of this Code relating to building workers and such other matters as the State Government 
may refer to it for advice. 

8. Disqualification and removal of a member of any Social Security Organisation.—(1) No person 
shall be chosen as, or continue to be, a member of a Social Security Organisation, or any Committee thereof 
who,— 

(a) is or at any time has been adjudged an insolvent; or 

(b) is found to be a lunatic or becomes of unsound mind; or 

(c) is or has been convicted of any offence involving moral turpitude; or 

(d) is an employer in an establishment and has defaulted in the payment of any dues under this Code; 

(e) is a member of a Social Security Organisation being a member of the Parliament or a member of 
a State Legislative Assembly, when he ceases to be such member of the Parliament or State Legislative 
Assembly, as the case may be; or 

(f) is a member of Social Security Organisation being a member of the Parliament or a member of a 

State Legislative Assembly, and he becomes a— 

(i) Minister of Central or State Government; or 

(ii) Speaker or Deputy Speaker of House of the People or a State Legislative Assembly; or 

(iii) Deputy Chairman of the Council of States. 

Explanation 1.—If any question arises whether any person is disqualified under clause (d), it shall be 
referred  to  the  appropriate  Government  and  the  decision  of  the  appropriate  Government  on  any  such 
question shall be final. 

Explanation 2.—Clause (f) shall not apply in case of persons who are members of the Social Security 

Organisation ex officio, by virtue of being a Minister. 

(2)  The  Central  Government,  in  case  of  the  Central  Board,  the  Corporation  and  the  National  Social 
Security Board and the State Government in case of the State Unorganised Workers' Board and the Building 
Workers' Welfare Board, may remove any member of such Social Security Organisation from his office, 
who,— 

(a) is or has become subject to any of the disqualifications mentioned in sub-section (1); or 

22 

 
(b) is absent without leave of the Social Security Organisation of which he is a member for more 

than three consecutive meetings of the Social Security Organisation or a Committee thereof; 

(c) in the opinion of such Government,  has  so  abused  the position  of  his  office  as  to  render  that 
member's continuation in the office detrimental to the public interest or is otherwise unfit or unsuitable 
to continue as such member in the opinion of such Government: 

Provided that no person shall be removed under clauses (b) and (c), unless that person has been given 

an opportunity to show cause as to why he should not be removed: 

Provided  further  that  a  member  of  the  Executive  Committee  of  the  Central  Board  or  the  Standing 
Committee of the Corporation shall cease to hold office if he ceases to be a member of the Central Board 
or the Corporation, as the case may be. 

(3) Any member of a Social Security Organisation or a Committee thereof may at any time resign from 
his office in writing under his hand addressed to the Central Government or the State Government, as the 
case  may  be,  which  had  made  his  appointment  and  on  acceptance  of  such  resignation,  his  office  shall 
become vacant. 

(4) If in a Social Security Organisation or a Committee thereof, the Central Government or the State 

Government, as the case may be, is of the opinion that— 

(a) any member thereof representing employers or the employees or the unorganised workers, as the 

case may be, ceases to adequately represent so; or 

(b)  any  member  thereof  representing  to  be  an  expert  in  a  specified  area,  is  later  on  found  not  to 

possess sufficient expertise in that area; or 

(c) having regard to exigencies of circumstances or services in such Government, the member thereof 
representing such Government cannot continue to represent the Government, then, such Government 
may, by order, remove such member from his office: 

Provided that no person shall be removed under clause (a) or clause (b), unless that person has been 

given an opportunity to show cause as to why he should not be removed. 

(5)  If  any  member  of  a  Social  Security  Organisation or  a  Committee  thereof,  who  is  a  director  of  a 
company and who as such director, has any direct or indirect pecuniary interest in any matter coming up 
for consideration of the Social Security Organisation or a Committee thereof, then, he shall, as soon as may 
be possible after such fact of interest has come to his knowledge, disclose the nature of the interest and such 
disclosure  shall  be  recorded  in  the  proceedings  of  the  Social  Security  Organisation  or  the  Committee 
thereof, as the case may be, and such member, thereafter, shall not take part in any proceeding or decision 
of the Social Security Organisation, or a Committee thereof relating to that matter. 

9. Procedure for transaction of business of Social Security Organisation, etc. (1) A Social Security 
Organisation or any Committee thereof shall meet at such intervals and observe such procedure in regard 
to the transaction of business at its meetings (including the quorum at such meetings) as may be prescribed 
by the Central Government. 

(2) All orders and decisions of the Social Security Organisation shall be authenticated by the Central 
Provident  Fund  Commissioner,  Director  General,  Director  General  Labour  Welfare,  State  Principal 
Secretary or Secretary (Labour) of the respective Social Security Organisations or such other officer as may 
be  notified  by  the  appropriate  Government  and  all  other  instruments  issued  by  the  Social  Security 
Organisation shall be authenticated by the signature of such officer as may be authorised by an order by the 
respective Social Security Organisations. 

(3) No act done or proceeding taken by a Social Security Organisation or any Committee thereof shall 
be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of 
the Social Security Organisation or the Committee thereof, as the case may be. 

(4) Such members of a Social Security Organisation or any Committee thereof shall be entitled for such 

fee and allowances as may be prescribed by the Central Government. 

23 

 
10.  Executive  Heads  of  Central  Board  and  Corporation.—The  Central  Provident  Fund 
Commissioner  and  the  Director  General  shall  be  the  whole-time  officer  of  the  Central  Board  and  the 
Corporation,  respectively,  and  such  officer  shall  not  undertake  any  work  unconnected  with  his  office 
without the prior approval of the Central Government. 

11.  Supersession  of  Corporation,  Central  Board  National  Social  Security  Board  or  State 
Unorganised  Workers’  Board  or  the  Building  Workers’  Welfare  Board.—  (1)  If  the  Central 
Government in case of the Central Board, the Corporation or the National Social Security Board and the 
State  Government,  in  case  of  the  State  Unorganised  Workers'  Board  or  the  Building  Workers'  Welfare 
Board, is of the opinion that the Corporation or the Central Board or the National Social Security Board or 
the State Unorganised Workers’ Board or the Building Workers' Welfare Board or any of the Committee 
thereof,  as  the  case  may  be,  is  unable  to  perform  its  functions,  or,  has  persistently  made  delay  in  the 
discharge of its functions or has exceeded or abused its powers or jurisdiction, then such Government may, 
by notification, supersede the Corporation or the Central Board or the National Social Security Board or 
the State Unorganised Workers' Board or the Building Workers’ Welfare Board, or any of the Committees 
thereof,  as  the  case  may  be,  and  reconstitute  it  in  such  manner  as  may  be  prescribed  by  the  Central 
Government: 

Provided  that,  before  issuing  a  notification  under  this  sub-section  on  any  of  the  grounds  specified 
herein, such Government shall give an opportunity to the Corporation or the Central Board or the National 
Social Security Board or the State Unorganised Workers’ Board or the Building Workers' Welfare Board 
or any Committee thereof, as the case may be, to show cause as to why it should not be superseded and 
shall consider the explanations and objections raised by it and take appropriate action thereon. 

(2)  After the  supersession of  the  Corporation,  or the Central  Board  or  the  National  Social  Security 
Board,  the  State  Unorganised  Workers’  Board  or  the  Building  Workers’  Welfare  Board,  or  any  of  the 
Committee thereof, as the case may be, and until it is reconstituted, the Central Government or the State 
Government, as the case may be, shall make such alternate arrangements for the purpose of administration 
of the relevant provisions of this Code, as may be prescribed by the Central Government. 

(3) The Central Government or the State Government, as the case may be, shall cause, a full report of 
any action taken by it under this section and the circumstances leading to such action, to be laid before each 
House of Parliament or the State Legislature, as the case may be, at the earliest opportunity and in any case 
not later than three months from the date of the notification of supersession issued under sub-section (1). 

12. State Board, Regional Boards, local committees etc.— (1) The Central Government may, by 

notification,— 

(i) after consultation with the Government of any State, constitute for that State, a Board of Trustees 
(hereinafter in this Code referred to as a State Board) which shall exercise such powers and perform 
such functions as may be assigned by notification, to it by the Central Government from time to time; 

(ii) specify the manner of constitution of a State Board, the terms and conditions of the appointment 

of its members and the procedure of its meeting and other proceedings relating thereto. 

(2) The Corporation may, by order, appoint Regional Boards and local committees in such area and in 
such manner to perform such functions and to exercise such powers as may be specified in the regulations. 

13.  Entrustment  of  additional  functions  to  Social  Security  Organisations.—Notwithstanding 

anything contained in this Code, the Central Government may, by notification,— 

(i) assign additional functions to a Social Security Organisation including administration of any 
other Act or scheme relating to social security subject to such provisions as may be specified in this 
behalf in the notification: 

Provided that while the additional function of administering the Act or scheme are assigned under 
this clause to a Social Security Organisation, the officer or authority of such organisation, to whom 
such function has been assigned, shall exercise the powers under the enactment or scheme required for 
discharging such function in the manner as may be specified in the notification: 

24 

 
Provided further that the  Social  Security  Organisations  may  assign  such additional functions to 
existing officers or appoint or engage new officers necessary for such purpose, if such functions may 
not be performed and completed with the assistance of its personnel as existing immediately before the 
assignment of the additional functions; 

(ii) specify the terms and conditions of discharging the functions under clause (i) by the Social 

Security Organisation; 

(iii)  provide  that  the  expenditure  incurred  in  discharging  the  functions  specified  in  clause  (i) 
including appointment or engagement of personnel necessary for proper discharge of such functions 
shall be borne by the Central Government; 

(iv) specify the powers which the Social Security Organisation shall exercise while discharging the 

functions specified in clause (i); and 

(v)  provide that any  expenditure  referred to in  clause  (iii) shall  be  made  by  the  Social  Security 

Organisation after prior approval of the Central Government. 

CHAPTER III 

EMPLOYEES’ PROVIDENT FUND 

14. Appointment of officers of Central Board.—(1) The Central Government may appoint a Central 
Provident Fund Commissioner who shall be the Chief Executive Officer of the Central Board and shall also 
function as head of the Employees’ Provident Fund Organisation. 

Explanation.—For  the  purposes  of  this  Code,  the  expression  “Employees’  Provident  Fund 

Organisation” means the organisation consisting of officers and employees of the Central Board. 

(2)  The  Central  Provident  Fund  Commissioner  shall  be  subject  to  the  general  control  and 

superintendence of the Central Board in the discharge of his functions under this Code. 

(3) The Central Government shall also appoint a Financial Advisor and Chief Accounts Officer to assist 

the Central Provident Fund Commissioner in the discharge of his duties. 

(4)  The  Central  Board  may  appoint,  as  many  Additional  Central  Provident  Fund  Commissioners, 
Deputy  Provident  Fund  Commissioners,  Regional  Provident  Fund  Commissioners,  Assistant  Provident 
Fund Commissioners and such other officers and employees as it may consider necessary for the efficient 
administration  of  the  Provident  Fund  Scheme,  the  Pension  Scheme  and  the  Insurance  Scheme  or  other 
responsibilities assigned to the Central Board from time to time by the Central Government. 

(5) No appointment to the post of the Central Provident Fund Commissioner or an Additional Central 
Provident Fund Commissioner or a Financial Adviser and Chief Accounts Officer or any other post under 
the Central Board carrying a scale of pay equivalent to the scale of pay of any Group 'A' or Group 'B' post 
under  the  Central  Government  shall  be  made  except  after  consultation  with  the  Union  Public  Service 
Commission: 

Provided that no such consultation shall be necessary in regard to any such appointment— 

(a) for a period not exceeding one year; or 

(b) if the person to be appointed is, at the time of his appointment,— 

(i) a member of the Indian Administrative Service, or 

(ii) in the service of the Central Government or the Central Board in a Group 'A' or Group 'B' 

post. 

(6) The method of recruitment, salary and allowances, discipline and other conditions of service of the 
Central Provident Fund Commissioner and the Financial Adviser and Chief Accounts Officer shall be such 
as may be specified by the Central Government and such salary and allowances shall be paid out of the 
Provident Fund. 

(7) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of 
the Additional Central Provident Fund Commissioners, Deputy Provident Fund Commissioners, Regional 

25 

 
Provident  Fund  Commissioners,  Assistant  Provident  Fund  Commissioners  and  other  officers  and 
employees of the Central Board shall be such as may be specified by the Central Board in accordance with 
the  rules  and  orders  applicable  to  the  officers  and  employees  of  the  Central  Government  drawing 
corresponding scales of pay: 

Provided that where the Central Board is of the opinion that it is necessary to make a departure from 
the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the 
Central Government: 

Provided further that the salary and allowances of the officers specified in this clause shall not exceed 

the scale of pay respectively provided in the Provident Fund Scheme. 

(b)  In  determining  the  corresponding  scales  of  pay  of  officers  and  employees  under  clause  (a),  the 
Central  Board  shall  have  regard  to  the  educational  qualifications,  method  of  recruitment,  duties  and 
responsibilities of such officers and employees under the Central Government and in case of any doubt, the 
Central Board shall refer the matter to the Central Government whose decision thereon shall be final. 

15. Schemes.—(1) The Central Government may, by notification— 

(a) frame a scheme to be called the Employees' Provident Fund Scheme for which the provident 
funds shall be established under this Chapter for employees or for any class of employees and specify 
the establishments or class of establishments to which the said scheme shall apply; 

(b) frame a scheme to be called the Employees' Pension Scheme for the purpose of providing for— 

(i)  superannuation  pension,  retiring  pension  or  permanent  total  disablement  pension  to  the 

employees of any establishment or class of establishments to which this Chapter applies; 

(ii) widow or widower's pension, children pension or orphan pension payable to the beneficiaries 

of such employees; and 

(iii) nominee pension; 

(c) frame a scheme to be called the Employees' Deposit Linked Insurance Scheme for the purpose 
of providing life insurance benefits to the employees of any establishment or class of establishments to 
which this Chapter applies; 

(d) frame any other scheme or schemes for the purposes of providing social security benefits under 

this Code to self-employed workers or any other class of persons; and 

(e) modify any scheme referred to in clauses (a), (b), (c) and (d) by adding thereto, amending or 

varying therein, either prospectively or retrospectively. 

(2)  Subject  to  the  provisions  of  this  Chapter,  the  schemes  referred  to  in  clauses  (a),  (b)  and  (c)  of  
sub-section (1) may provide for all or any of the matters respectively specified in Part A, Part B and Part C 
of the Fifth Schedule. 

(3) The schemes may provide that all or any of its provisions shall take effect either prospectively or 

retrospectively on and from such date as may be specified in that behalf in the scheme. 

16.  Funds.—(1) The Central Government may, for the purposes of— 

(a) the Provident Fund Scheme, establish a Provident Fund where the contributions paid by the 
employer  to  the  fund  shall  be  ten  per  cent.  of  the  wages  for  the  time  being  payable  to  each  of  the 
employees  (whether  employed  by  him  directly  or  by  or  through  a  contactor),  and  the  employee's 
contribution shall be equal to the contribution payable by the employer in respect of him and may, if 
any employee so desires, be an amount exceeding ten per cent. of the wages, subject to the condition 
that  the  employer  shall  not  be  under  an  obligation  to  pay  any  contribution  over  and  above  his 
contribution payable under this section: 

Provided that in its application to any establishment or class of establishments which the Central 
Government, after making such inquiry as it deems fit, may, by notification, specify, this section shall 
be subject to the modification that for the words “ten per cent.” at both the places where they occur, the 
words “twelve per cent.” shall be substituted: 

26 

 
Provided further that the Central Government, after making such inquiry as it deems fit, may, by 
notification, specify rates of employees’ contributions and the period for which such rates shall apply 
for any class of employee; 

(b) the Pension Scheme, establish a Pension Fund in the manner specified in that scheme by that 
Government into which there shall be paid, from time to time, in respect of every employee who is a 
member of the Pension Scheme,— 

(i) such sums from the employer's contribution under clause (a) not exceeding eight and one-
third  per  cent.  of  the  wages  or  such  per  cent.  of  wages  as  may  be  notified  by  the  Central 
Government; 

(ii) such sums payable as contribution to the Pension Fund, as may be specified in the Pension 
Scheme, by the employers of the exempted establishments under section 143 to which the pension 
scheme applies; 

(iii) such sums as the Central Government after due appropriation by Parliament by law in this 

behalf, specify; 

(c) the Insurance Scheme, establish a Deposit-Linked Insurance Fund in the manner specified in 
that scheme by that Government into which there shall be paid by the employer from time to time in 
respect of every such employee in relation to whom he is the employer, such amount, not being more 
than one per cent. of the wages or such per cent. of wages as may be notified by the Central Government 
for the time being payable in relation to such employee: 

Provided  that the  employer  shall  pay  into  the  Insurance  Fund  such  further sums  of  money,  not 
exceeding one-fourth of the contribution which he is required to make under this clause, as the Central 
Government  may,  from  time  to  time,  determine  to  meet  all  the  expenses  in  connection  with  the 
administration  of  the  Insurance  Scheme  other  than  the  expenses  towards  the  cost  of  any  benefits 
provided by or under the Insurance Scheme. 

(2) The Provident Fund, the Pension Fund and the Insurance Fund shall vest in, and be administered 

by, the Central Board in such manner as may be specified in the respective schemes. 

17. Contribution in respect of employees and contractors.—(1) The amount of contribution (that is 
to say, the employer's contribution as well as the employee's contribution in pursuance of any scheme and 
the employer's contribution in pursuance of the Insurance Scheme) and any charge for meeting the cost of 
administering the fund paid or payable by an employer in respect of an employee employed by or through 
a contractor may be recovered by such employer from the contractor, either by deduction from any amount 
payable to the contractor under any contract or as a debt payable by the contractor. 

(2) A contractor from whom the amounts mentioned in sub-section (1) may be recovered in respect of 
any employee employed by or through him may recover from such employee, the employee's contribution 
under any scheme by deduction from the wages payable to such employee. 

(3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct the employer's 
contribution or the charges referred to in sub-section (1) from the wages payable to an employee employed 
by or through him or otherwise to recover such contribution or charges from such employee. 

18. Fund to be recognized under Act 43 of 1961.— For the purposes of the Income-tax Act, 1961, 
the Provident Fund shall be deemed to be a recognised provident fund within the meaning of clause (38) of 
section 2 of that Act: 

Provided that nothing contained in the said Act shall operate to render ineffective any provision of the 
Provident Fund Scheme (under which the Provident Fund is established) which is repugnant to any of the 
provisions of that Act or of the rules made thereunder. 

19. Priority of payment of contributions over other debts.—Notwithstanding anything contained in 
any other law for the time being in force, any amount due under this Chapter shall be the charge on the 
assets of the establishment to which it relates and shall be paid in priority in accordance with the provisions 
of the Insolvency and Bankruptcy Code, 2016 (31 of 2016). 

27 

 
20. Chapter not to apply to certain establishments.—(1) This Chapter shall not apply— 

(a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912) or under 
any other law for the time being in force in any State relating to co-operative societies employing less 
than fifty persons and working without the aid of power; or 

(b) to any other establishment belonging to or under the control of the Central Government or a State 
Government and whose employees are entitled to the benefit of contributory provident fund or old age 
pension  in  accordance  with  any  scheme  or  rule  framed  by  the  Central  Government  or  the  State 
Government governing such benefits; or 

(c) to any other establishment set up under any Central or State or any other law for the time being in 
force and whose employees are entitled to the benefits of contributory provident fund or old age pension 
in accordance with any scheme or rule framed under that law governing such benefits; or 

(d)  to  the  employees  who,  immediately  before  the  commencement  of  this  Code,  were  receiving 

benefits of Provident Fund under any Central or State enactment. 

(2) If the Central Government is of the opinion that having regard to the financial position of any class 
of  establishment  or  other  circumstances  of  the  case,  it  is  necessary  or  expedient  so  to  do,  it  may,  by 
notification  and  subject  to  such  conditions,  as  may  be  specified  in  the  notification,  exempt,  whether 
prospectively or retrospectively, that class of establishments from the operation of this Chapter for such 
period as may be specified in the notification. 

21.  Authorising  certain  employer  to  maintain  provident  fund  accounts.—  (1)  The  Central 
Government may, on an application made to it in this behalf by the employer and the majority of employees 
in relation to an establishment employing one hundred or more persons, authorise the employer by an order 
in writing, to maintain a provident fund account in relation to the establishment, in such manner as may be 
prescribed by the Central Government and subject to such terms and conditions as may be specified in the 
Provident Fund Scheme: 

Provided  that  no  authorisation  shall  be  made  under  this  sub-section  if  the  employer  of  such 
establishment had committed any default in the payment of provident fund contribution or had committed 
any  other  offence  under  this  Code  during  the  three  years  immediately  preceding  the  date  of  such 
authorisation. 

(2) Where an establishment is authorised to maintain a provident fund account under sub-section (1), 
the employer in relation to such establishment shall maintain such account, submit such return, deposit the 
contribution in such manner, provide for such facilities for inspection, pay such administrative charges, and 
abide by such other terms and conditions, as may be specified in the Provident Fund Scheme. 

(3) Any authorisation made under this section may be cancelled by the Central Government by order 
in writing if the employer fails to comply with any of the terms and conditions of the authorisation or where 
he commits any offence under any provision of this Code: 

Provided that before cancelling the authorisation, the Central Government shall give the employer a 

reasonable opportunity of being heard. 

22. Transfer of accounts.— Where an employee,— 

(a)  employed  in  an  establishment  to  which  this  Chapter  applies,  relinquishes  his  employment 
therefrom and obtains employment in any other establishment to which this Chapter applies or not; or 

(b)  employed  in  an  establishment  to  which  this  Chapter  does  not  apply,  relinquishes  his 
employment therefrom and obtains employment in an establishment to which this Chapter applies, then, 
his accumulated amount in provident fund account or pension account, as the case may be, shall be 
transferred or dealt with in the manner as may be specified in the Provident Fund Scheme or the Pension 
Scheme, as the case may be. 

23. Appeal to Tribunal.—(1) Any person aggrieved by an order passed by any authority in regard to 
the  following  matters  may  prefer  an  appeal  to  the  Tribunal  constituted  by  the  Central  Government, 
namely:— 

28 

 
(a) determination and assessment of dues under section 125 relating to Chapter III; and 

(b) levy of damages under section 128 relating to Chapter III. 

(2) Every appeal under sub-section (1) shall be filed in such form and manner, within such time and 

accompanied by such fees as may be prescribed by the Central Government. 

(3) No appeal under clause (a) of sub-section (1) by the employer shall be entertained by the Tribunal 
unless he has deposited with Social Security Organisation concerned twenty-five per cent. of the amount 
due from him as determined by an officer under section 125. 

(4) The Tribunal shall endeavour to decide the appeal within a period of one year from the date on 

which the appeal has been preferred. 

CHAPTER IV 

EMPLOYEES STATE INSURANCE CORPORATION 

24. Principal Officers and other staff.—(1) The Central Government may appoint a Director General 
of the Corporation and a Financial Commissioner, who shall be the Principal Officers of the Corporation. 

(2)  The  Director  General  and  the  Financial  Commissioner  shall  hold  office  for  such  period,  not 

exceeding five years, as may be specified in the order of appointment: 

Provided  that  outgoing  Director  General  or  Financial  Commissioner,  as  the  case  may  be,  shall  be 

eligible for re-appointment if he is otherwise qualified. 

(3) The Director General or the Financial Commissioner shall receive such salary and allowances as 

may be prescribed by the Central Government. 

(4) The Director General and the Financial Commissioner shall exercise such powers and discharge 
such duties as may be prescribed by the Central Government and shall perform such other functions as may 
be specified in the regulations. 

(5) A person shall be disqualified from being appointed as or for being the Director General of the 
Corporation  or  the  Financial  Commissioner  if  he  is  subject  to  any  of  the  disqualifications  specified  in 
section 8. 

(6) The Central Government may at any time remove the Director General of the Corporation or the 
Financial Commissioner from office and shall do so if such removal is recommended by a resolution of the 
Corporation passed at a special meeting called for the purpose and supported by the votes of not less than 
two-third of the total strength of the Corporation. 

(7)  The  Corporation  may  employ  such  other  officers  and  employees  as  may  be  necessary  for  the 
efficient  transaction  of  its  business  and  for  discharge  of  any  other  responsibilities  assigned  to  the 
Corporation from time to time by the Central Government: 

Provided that the sanction of the Central Government shall be obtained for the creation of any post the 
maximum monthly salary of which exceeds such salary as may be prescribed by the Central Government. 

(8) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of 
the  officers  and  employees  of  the  Corporation  shall  be  such  as  may  be  specified  in  the  regulations  in 
accordance with the rules and orders applicable to the officers and employees of the Central Government 
drawing corresponding scales of pay: 

Provided that the terms and conditions of service including pay and allowances of such posts of medical 
specialists and super specialists in the Corporation possessing comparable qualifications and expertise, as 
may be notified by the Central Government, with the equivalent posts of the specialists and super specialists 
in the All India Institute of Medical Sciences or in the Post Graduate Institutes of Medical Sciences and 
Research or other similar institutions established by the Central Government, shall respectively be similar: 

Provided further that where the Corporation is of the opinion that it is necessary to make a departure 
from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of 
the Central Government: 

29 

 
Provided  also  that  this  sub-section  shall  not  apply  to  appointment  of  consultants  and  specialists  in 

various fields appointed on contract basis. 

(b)  In  determining  the  corresponding  scales  of  pay  of  officers  and  employees  under  clause  (a),  the 
Corporation  shall  have  regard  to  the  educational  qualifications,  method  of  recruitment,  duties  and 
responsibilities of such officers and employees under the Central Government and in case of any doubt, the 
Corporation shall refer the matter to the Central Government whose decision thereon shall be final. 

(9) Every appointment to posts (other than medical, nursing or para-medical posts) corresponding to 
Group 'A' and Group 'B' Gazetted posts under the Central Government shall be made in consultation with 
the Union Public Service Commission: 

Provided  that  the  provisions  of  this  sub-section  shall  not  apply  to  an  officiating  or  temporary 

appointment for a period not exceeding one year: 

Provided  further  that  any  such  officiating  or  temporary  appointment  shall  not  confer  any  claim  for 
regular appointment and the services rendered in that capacity shall not count towards seniority or minimum 
qualifying service specified in the regulations for promotion to next higher grade. 

(10) If any question arises whether a post corresponds to a Group 'A' and Group 'B' posts under the 
Central Government, the question shall be referred to that Government whose decision thereon shall be 
final. 

25.  Employees’  State  Insurance  Fund.—(1)  All  contributions  and  user  charges  paid  under  this 
Chapter and all other moneys received on behalf of the Corporation shall be paid into a fund (hereinafter 
referred  to  as  the  Employees'  State  Insurance  Fund)  which  shall  be  held  and  administered  by  the 
Corporation for the purposes of this Code: 

Provided that the user charges collected from the other beneficiaries referred to in section 44 shall be 

deemed to be contribution and shall form part of Employees' State Insurance Corporation. 

(2) The Corporation may accept grants, donations, Corporate Social Responsibility Fund and gifts from 
the Central or any State Government, local authority, or any individual or body whether incorporated or 
not, for all or any of the purposes of this Chapter. 

(3) Subject to the other provisions contained in this Code and to any rules or regulations made in this 
behalf, all moneys accruing or payable to the said Fund shall be deposited in such bank or banks as may be 
approved by the Central Government to the credit of an account styled the account of the Employees' State 
Insurance Fund. 

(4) The Employees State Insurance Fund or any other money which is held by the Corporation shall be 
deposited or invested in the manner prescribed by the Central Government and the account referred to in 
sub-section (3) shall be operated by such officers as may be authorised by the Committee constituted under 
sub-section (3) of section 5 (hereinafter referred to as the Standing Committee) with the approval of the 
Corporation. 

26.  Purposes  for  which  Employees’  State  Insurance  Fund  may  be  expended.—  Subject  to  the 
provisions  of  this  Chapter  and  the  rules  and  regulations  relating  thereto,  made  under  this  Code,  the 
Employees' State Insurance Fund shall be expended only for the following purposes, namely:— 

(a) payment of benefits and provision of medical treatment and attendance to Insured Persons referred 
to  in  section  28  and,  where  the  medical  benefit  is  extended  to  their  families,  the  provision  of  such 
medical benefit to their families, in accordance with the provisions of this Chapter and the rules and 
regulations relating thereto and defraying the charges and costs in connection therewith; 

(b) payment of fees and allowances to members of the Corporation, the Standing Committee, the 

Medical Benefit Committee or other Committees thereof; 

(c) payment of salaries, leave and joining time allowances, travelling and compensatory allowances, 
gratuities and compassionate allowances, pensions, contributions to provident or other benefit fund of 
officers and staff of the Corporation and meeting the expenditure in respect of offices and other services 
set up for the purpose of giving effect to the provisions of this Code relating to this Chapter; 

30 

 
(d) establishment and maintenance of hospitals, dispensaries and other institutions and the provision 
of medical and other ancillary services for the benefit of Insured Persons referred to in section 28 and, 
where the medical benefit is extended to their families; 

(e)  payment  of  contributions  to  any  State  Government,  local  authority  or  any  private  body  or 
individual, towards the cost of medical treatment and attendance provided to Insured Persons referred 
to in section 28 and, where the medical benefit is extended to their families, their families, including 
the  cost  of  any  building  and  equipment,  in  accordance  with  any  agreement  entered  into  by  the 
Corporation; 

(f) defraying the cost (including all expenses) of auditing the accounts of the Corporation and of the 

valuation of its assets and liabilities; 

(g) defraying the cost (including all expenses) of the Employees' Insurance Courts set up under this 

Chapter; 

(h) payment of any sums under any contract entered into for the purposes of this Code by Corporation 
or  the  Standing  Committee  or  by  any  officer  duly  authorised  by  the  Corporation  or  the  Standing 
Committee in that behalf; 

(i)  payment  of  sums  under  any  decree,  order  or  award  of  any  Court  or  Tribunal  against  the 
Corporation  or  any  of  its  officers  or  staff  for  any  act  done  in  the  execution  of  his  duty  or  under  a 
compromise or settlement of any suit or other legal proceeding or claim instituted or made against the 
Corporation; 

(j) defraying the cost and other charges of instituting or defending any civil or criminal proceedings 

arising out of any action taken under this Code relating to this Chapter; 

(k) defraying expenditure, within the limits prescribed by the Central Government after consultation 
with the Corporation, on measures for the improvement of the health and welfare of Insured Persons 
and for the rehabilitation and re-employment of Insured Persons referred to in section 28 who have 
been disabled or injured; and 

(l) such other purposes as may be authorised by the Corporation with the previous approval of the 

Central Government. 

27.  Holding  of  property,  etc.  .—  (1)  The  Corporation  may,  subject  to  such  conditions  as  may  be 
prescribed by the Central Government, acquire and hold property, both movable and immovable, sell or 
otherwise transfer any movable or immovable property which may have become vested in or have been 
acquired by it and do all things necessary for the purposes for which the Corporation is established. 

(2) Subject to such conditions as may be prescribed by the Central Government, the Corporation may 
from time to time invest any moneys which are not immediately required for expenses properly defrayable 
under this Code and may, subject to as aforesaid, from time to time re-invest or realise such investments. 

(3) The Corporation may, with the previous sanction of the Central Government and on such terms as 

may be prescribed by it, raise loans and take measures for discharging such loans. 

(4) The Corporation may constitute for the benefit of its officers and staff or any class of them, such 

provident or other benefit fund as it may think fit. 

28. All employees to be insured.—(1) Subject to the provisions of this Code, every employee in an 
establishment  to  which  this  Chapter  applies  shall  be  insured  in  such  manner  whether  electronically  or 
otherwise, as may be prescribed by the Central Government. 

(2) An employee whether insured or insurable under sub-section (1) in respect of whom contributions 
are or were payable and who is by reason thereof, entitled to any of the benefits provided under this Chapter, 
shall be called “Insured Person”. 

29. Contributions.—(1) The contribution payable under this Chapter in respect of an employee shall 
comprise contribution payable by the employer (hereinafter referred to as the employer's contribution) and 
contribution payable by the employee (hereinafter referred to as the employee's contribution) and shall be 
paid to the Corporation. 

31 

 
(2) The contributions (employer's contribution and the employee’s contribution both) shall be paid at 

such rates as may be prescribed by the Central Government. 

(3)  The  wage  period  in  relation  to  an  employee  shall  be  the  unit  as  specified  in  the  regulations 
(hereinafter referred to as the wage period) in respect of which all contributions shall be payable under this 
Chapter. 

(4) The contributions payable in respect of each wage period shall ordinarily fall due on the last day of 
the wage period, and where an employee is employed for part of the wage period, or is employed under two 
or more employers during the same wage period, the contributions shall fall due on such days as may be 
specified in the regulations. 

30.    Administrative  expenses.—The  types  of  expenses  which  may  be  termed  as  administrative 
expenses and the percentage of the income of the Corporation which may be spent for such expenses shall 
be such as may be prescribed by the Central Government and the Corporation shall keep its administrative 
expenses within the limit so prescribed by the Central Government. 

31. Provisions as to payment of contributions by employer etc. .— (1) The employer shall pay in 
respect  of  every  employee,  whether  directly  employed  by  him  or  by  or  through  a  contractor,  both  the 
employer's contribution and the employee's contribution. 

(2) Notwithstanding anything contained in any other law for the time being in force, but subject to the 
provisions of this Code and the rules and regulations, if any, made thereunder in this behalf, the employer 
shall, in the case of an employee directly employed by him (not being an exempted employee), be entitled 
to recover from the employee the employee's contribution by reduction from his wages and not otherwise: 

Provided that no such deduction shall be made from any wages other than such as relates to the period 
or part of the period in respect of which the contribution is payable or in excess of the sum representing the 
employee's contribution for the period. 

(3)  Notwithstanding  any  contract  to  the  contrary,  neither  the  employer  nor  the  contractor  shall  be 
entitled  to  deduct  the  employer's  contribution  from  any  wages  payable  to  an  employee  or  otherwise  to 
recover it from him. 

(4) Any sum deducted by the employer from wages under this Chapter shall be deemed to have been 
entrusted to him by the employee for the purpose of paying the contribution in respect of which it was 
deducted. 

(5) The employer shall bear the expenses of remitting the contributions to the Corporation. 

(6)  An  employer,  who  has  paid  contribution  in  respect  of  an  employee  employed  by  or  through  a 
contractor, shall be entitled to recover the amount of the contribution so paid (that is to say the employer's 
contribution as well as the employee's contribution, if any,) from the contractor, either by deduction from 
any amount payable to him by the employer under any contract, or as a debt payable by the contractor. 

(7) The contractor shall maintain a register of employees employed by or through him as provided in 
the regulations and submit the same to the employer before the settlement of any amount payable under 
sub-section (6). 

(8) In the case referred to in sub-section (6), the contractor shall be entitled to recover the employee's 
contribution from the employee employed by or through him by deduction from wages and not otherwise, 
subject to such conditions as specified in the proviso to sub-section (2). 

(9) Subject to the provisions of this Code, the Corporation may make regulations for any matter relating 

or incidental to the payment and collection of contributions payable under this Chapter. 

32. Benefits.— (1) Subject to the provisions of this Code, the Insured Persons, their dependants or the 

persons hereinafter mentioned, as the case may be, shall be entitled to the following benefits, namely:— 

(a) periodical payments to any Insured Person in case of his sickness certified by a duly appointed 
medical  practitioner  or  by  any  other  person  possessing  such  qualifications  and  experience  as  the 
Corporation may, by the regulations, specify in this behalf (hereinafter referred to as sickness benefit); 

32 

 
(b) periodical payments to an Insured Person being a woman in case of confinement or miscarriage 
or sickness arising out of pregnancy, confinement, premature birth of child or miscarriage, such woman 
being certified to be eligible for such payments by an authority specified in this behalf by the regulations 
(hereinafter referred to as maternity benefit); 

(c) periodical payments to an Insured Person suffering from disablement as a result of an employment 
injury sustained by him as an employee for the purposes of this Chapter and certified to be eligible for 
such payments by an authority specified in this behalf by the regulations (hereinafter referred to as 
disablement benefit); 

(d)  periodical  payments  to  such  dependants  of  an  Insured  Person  who  dies  as  a  result  of  an 
employment injury sustained by him as an employee for the purposes of this Chapter, as are entitled 
under this Chapter (hereinafter referred to as dependents’ benefit); 

(e)  medical  treatment  for  and  attendance  on  Insured  Persons  (hereinafter  referred  to  as  medical 

benefit); and 

(f) payment to the eldest surviving member of the family of an Insured Person who has died, towards 
the expenditure on the funeral of the deceased Insured Person, or, where the Insured Person did not 
have a family or was not living with his family at the time of his death, to the person who actually 
incurs the expenditure on the funeral of the deceased Insured Person (to be known as funeral expenses): 

Provided  that  the  amount  of  payment  under  this  clause  shall  not  exceed  such  amount  as  may  be 
prescribed by the Central Government and the claim for such payment shall be made within three months 
of  the  death  of the  Insured  Person  or  within such  extended  period  as the  Corporation  or  any  officer  or 
authority authorised by it in this behalf may allow. 

(2) The Corporation may, subject to such conditions as may be laid down in the regulations, extend the 

medical benefits to the family of an Insured Person. 

(3) The qualification of a person to claim sickness benefit, maternity benefit, disablement benefit and 
dependants' benefit and the conditions subject to which such benefit may be given and the rate and period 
thereof, shall be such as may be prescribed by the Central Government. 

(4) Subject to the provisions of this Code and the rules made thereunder relating to this Chapter, the 
Corporation  may  make  regulations  for  any  matter  relating  or  incidental  to  the  accrual  and  payment  of 
benefits payable under this Chapter. 

33.  Corporation’s  power  to  promote  measures  for  health,  etc.,  of  Insured  Persons.—The 
Corporation  may,  in  addition  to  the  benefits  specified  in  this  Chapter,  promote  measures  for  the 
improvement of the health and welfare of Insured Persons and for the rehabilitation and re-employment of 
Insured Persons who have been disabled or injured and may incur in respect of such measures, expenditure 
from  the  Employees'  State  Insurance  Fund  within  such  limits  as  may  be  prescribed  by  the  Central 
Government. 

34.  Presumption  as  to  accident  arising  in  course  of  employment.—(1)  For  the  purposes  of  this 
Chapter, an accident arising in the course of an employee's employment shall be presumed, in the absence 
of evidence to the contrary, to have arisen out of that employment. 

(2) An accident happening to an employee in or about any premises at which he is for the time being 
employed for the purpose of his employer's trade or business shall be deemed to arise out of and in the 
course of his employment, if it happens while he is taking steps, on an actual or supposed emergency at 
those premises, to rescue, succour or protect persons who are, or are thought to be or possibly to be, injured 
or imperilled, or to avert or minimise serious damage to property. 

(3)  An  accident  occurring  to  an  employee  while  commuting  from  his  residence  to  the  place  of 
employment  for  duty  or  from  the  place  of employment  to his  residence after  performing  duty,  shall  be 
deemed to have arisen out of and in the course of employment if nexus between the circumstances, time 
and place in which the accident occurred and the employment is established. 

(4)  An  accident  happening  while  an  employee  is,  with  the  express  or  implied  permission  of  his 
employer, travelling as a passenger by any vehicle to or from his place of work shall, notwithstanding that 

33 

 
he is under no obligation to his employer to travel by that vehicle, be deemed to arise out of and in the 
course of his employment, if— 

(a) the accident would have been deemed so to have arisen had he been under such obligation; and 

(b) at the time of the accident, the vehicle— 

(i) is being operated by or on behalf of his employer or some other person by whom it is provided 

in pursuance of arrangements made with his employer; and 

(ii) is not being operated in the ordinary course of public transport service. 

Explanation.—In this section, “vehicle” includes a vessel and an aircraft. 

35. Accidents happening while acting in breach of law etc.— An accident shall be deemed to arise 
out of and in the course of an employee's employment notwithstanding that he is at the time of the accident 
acting in contravention of the provisions of any law applicable to him, or of any orders given by or on 
behalf of his employer or that he is acting without instructions from his employer, if— 

(a) the accident would have been deemed so to have arisen had the act not been done in contravention 

as aforesaid or without instructions from his employer, as the case may be; and 

(b) the act is done for the purpose of and in connection with the employer's trade or business. 

36. Occupational disease.—(1) If an employee employed in any employment specified in Part A of 
the  Third  Schedule  contracts  any  disease  specified  therein  as  an  occupational  disease  peculiar  to  that 
employment, or if an employee employed in the employment specified in Part B of that Schedule for a 
continuous period of not less than six months contracts any disease specified therein as an occupational 
disease peculiar to that employment or if an employee employed in any employment specified in Part C of 
that Schedule for such continuous period as the Corporation may specify by regulations in respect of each 
such employment, contracts any disease specified in such Part C as an occupational disease peculiar to that 
employment,  the  contracting  of  the  disease  shall,  unless  the  contrary  is  proved,  be  deemed  to  be  an 
“employment injury “, arising out of and in the course of employment. 

(2) Save as provided by sub-section (1), no benefit shall be payable to an employee in respect of any 
disease unless the disease is directly attributable to a specific injury by accident arising out of and in the 
course of his employment. 

(3) The provisions of sub-section (1) of section 34 shall not apply to the cases to which this section 

applies. 

37. References to medical board.— (1) Any question— 

(a) whether the relevant accident has resulted in permanent disablement; or 

(b) whether the extent of loss of earning capacity can be assessed provisionally or finally; or 

(c) whether the assessment of the proportion of the loss of earning capacity is provisional or final; or 

(d) in the case of provisional assessment, as to the period for which such assessment shall hold good, 

shall be determined by a medical board constituted in accordance with the provisions of the regulations 
(hereinafter  referred  to  as  medical  board)  and  any  such  question  shall  hereafter  be  referred  to  as  the 
“disablement question”. 

(2)  The  case  of  any  Insured  Person  for  permanent  disablement  benefit  shall  be  referred  by  the 
Corporation  to  a  medical  board  for  determination  of  the  disablement  in  question  and  if,  on  that  or  any 
subsequent reference, the extent of loss of earning capacity of the Insured Person is provisionally assessed, 
it shall again be so referred to the medical board not later than the end of the period taken into account by 
the provisional assessment. 

(3) Any decision under this Chapter of a medical board may be reviewed at any time by the medical 
board if it is satisfied by fresh evidence that the decision was given in consequence of the non-disclosure 
or misrepresentation by the employee or any other person of a material fact whether the non-disclosure or 
misrepresentation was or was not fraudulent. 

34 

 
(4) Any assessment of the extent of the disablement resulting from the relevant employment injury may 
also be reviewed by a medical board if it is satisfied that since the making of the assessment there has been 
a substantial and unforeseen aggravation of the results of the relevant injury: 

Provided that an assessment shall not be reviewed under this sub-section unless the medical board is of 
the opinion, having regard to the period taken into account by the assessment and the probable duration of 
the aggravation aforesaid, that substantial injustice will be done by not reviewing it. 

(5) Except with the leave of a medical appeal tribunal constituted by regulations, an assessment shall 
not be reviewed under sub-section (4) on any application made less than five years, or in the case of a 
provisional assessment, six months, from the date thereof and on such a review the period to be taken into 
account by any revised assessment shall not include any period before the date of the application. 

(6) Subject to the foregoing provisions of this section, a medical board may deal with a case of review 
in any manner in which it could deal with it on an original reference to it, and in particular may make a 
provisional assessment notwithstanding that the assessment under review was final and the provisions of 
sub-section (2) shall apply to an application for review under this sub-section and to a decision of a medical 
board in connection with such application as they apply to a case for disablement benefit under that sub-
section and to a decision of the medical board in connection with such case. 

(7) (a) If the Insured Person or the Corporation is aggrieved by any decision of the medical board, the 
Insured Person or the Corporation, as the case may be, may appeal in such manner and within such time as 
may be prescribed by the Central Government to— 

(i) the medical appeal tribunal constituted in accordance with the provisions of the regulations; or 

(ii) the Employees' Insurance Court directly: 

Provided that no appeal by an Insured Person shall lie under this sub-section if such person has applied 
for commutation of disablement benefit on the basis of the decision of the medical board and received the 
commuted value of such benefits: 

Provided further that no appeal by the Corporation shall lie under this sub-section if the Corporation 

paid the commuted value of the disablement benefit on the basis of the decision of the medical board. 

(b) Where the Insured Person or the Corporation preferred appeal to the medical appeal tribunal under 
sub-clause (i) of clause (a) instead of to the Employees' Insurance Court under sub-clause (ii) of that clause, 
then,  he  or  it,  as  the  case  may  be,  shall  have  the  further  right  to  file  second  appeal  to  the  Employees' 
Insurance Court in such manner and within such time as may be prescribed by the appropriate Government. 

38. Dependants’ benefit.—(1) If an Insured Person dies as a result of an employment injury sustained 
as  an  employee  under  this  Chapter  (whether  or  not  he  was  in  receipt  of  any  periodical  payment  for 
temporary  disablement  in  respect  of  the  injury),  dependants'  benefit  shall  be  payable  to  his  dependants 
specified in sub-clause (a) and sub-clause (b) of clause (24) of section 2 at such rates and for such periods 
and subject to such conditions as may be prescribed by the Central Government. 

(2)  In  case  the  Insured  Person  dies  without  leaving  behind  him  the  dependants  as  aforesaid,  the 
dependants' benefit shall be paid to the other dependants of the deceased at such rates and for such periods 
and subject to such conditions as may be prescribed by the Central Government. 

(3) Any decision awarding dependants' benefit under this Chapter may be reviewed at any time by the 
Corporation if it is satisfied by fresh evidence that the decision was given in consequence of non-disclosure 
or misrepresentation by the claimant or any other person of a material fact (whether the non-disclosure or 
misrepresentation  was  or  was  not  fraudulent)  or  that  the  decision  is  no  longer  in  accordance  with  this 
Chapter due to any birth or death or due to the marriage, re-marriage, or ceasing of infirmity, or attainment 
of the age of twenty-five years by, a claimant. 

(4) Subject to the provisions of this Chapter, the Corporation may, on such review under sub-section 

(3), direct that the dependants' benefit be continued, increased, reduced or discontinued. 

35 

 
39. Medical benefit.—(1) An Insured Person or (where such medical benefit is extended to his family) 
a  member  of  his  family  whose  condition  requires  medical  treatment  and attendance  shall  be entitled to 
receive medical benefit. 

(2) Such medical benefit may be given either in the form of out-patient treatment and attendance in a 
hospital or dispensary, clinic or other institution or by visits to the home of the Insured Person or treatment 
as in-patient in a hospital or other institution. 

(3) The qualification of an Insured Person and (where such medical benefit is extended to his family) 
his family, to claim medical benefit and the conditions subject to which such benefit may be given, the scale 
and period thereof shall be such as may be prescribed by the Central Government: 

Provided that a person in respect of whom contribution ceases to be payable under this Chapter may be 

allowed medical benefit for such period and of such nature as may be provided by the regulations: 

Provided further that an Insured Person who has attained the age of superannuation, a person who retires 
under a Voluntary Retirement Scheme or takes premature retirement, and his spouse shall be eligible to 
receive medical benefits subject to payment of contribution and such other conditions as may be specified 
in the regulations: 

Provided  also  that  an  Insured  Person  who  ceases  to  be  in  insurable  employment  on  account  of 
permanent disablement caused due to employment injury shall continue to receive medical benefits, subject 
to payment of contribution and other conditions as may be prescribed by the Central Government: 

Provided also that the conditions for grant of medical benefits to the Insured Person during employment 

injury shall be as specified in the regulations. 

(4)  (a)  The  Corporation  may  establish  medical  education  institutions,  including  colleges,  dental 
colleges, nursing colleges and the training institutes for its officers and staff with a view to improve the 
quality of their services. 

(b) The medical education institutions referred to in clause (a) shall require its students to furnish a 
bond for serving the Corporation for such time and in such manner, as may be specified in the regulations. 

(5) The medical education institutions and training institutes referred to in sub-section (4) may be run 
by  the  Corporation  itself  or  on  the  request  of  the  Corporation,  by  the  Central  Government,  any  State 
Government, Public Sector Undertaking of the Central Government or the State Government or any other 
body notified by the Central Government. 

Explanation.—For  the  purposes  of  this  sub-section,  the  expression  “other  body”  means  any  such 
organisation  of  persons  which  the  Central  Government  considers  capable  to  run  colleges  and  training 
institutions referred to in sub-section (4). 

(6) The Corporation may, in order to take preventive and curative measures for welfare of the Insured 
Persons, carry out such occupational and epidemiological surveys and studies for assessment of health and 
working conditions of Insured Persons in such manner as may be specified in the regulations. 

40.  Provision  of  medical  treatment  by  State  Government  or  by  Corporation.—  (1)  The  State 
Government shall provide for Insured Persons and (where such benefit is extended to their families) their 
families in the State, reasonable medical, surgical and obstetric treatment: 

Provided that the State Government may, with the approval of the Corporation, arrange for medical 
treatment at clinics of medical practitioners on such scale and subject to such terms and conditions as may 
be agreed upon. 

(2) Where the incidence of sickness benefit payment to Insured Persons in any State is found to exceed 
the all-India average, the amount of such excess shall be shared between the Corporation and the State 
Government in such proportion as may be fixed by agreement between them: 

Provided that the Corporation may in any case waive the recovery of the whole or any part of the share 

which is to be borne by the State Government. 

36 

 
(3) The Corporation may enter into an agreement with a State Government in regard to the nature and 
scale of the medical treatment that should be provided to Insured Persons and (where such medical benefit 
is  extended  to  the  families)  their  families  (including  provision  of  buildings,  equipment,  medicines,  and 
staff) and for the sharing of the cost thereof and of any excess in the incidence of sickness benefit to Insured 
Persons between the Corporation and the State Government. 

(4) In default of agreement between the Corporation and any State Government as aforesaid, the nature 
and extent of the medical treatment to be provided by the State Government and the proportion in which 
the  cost  thereof  and  of  the  excess  in  the  incidence  of  sickness  benefit  shall  be  shared  between  the 
Corporation  and  that  Government,  shall  be  determined  by  an  arbitrator  who  shall  be  appointed  by  the 
Central Government in consultation with the State Government. 

(5)  The  State  Government  may,  in  addition  to  the  Corporation  under  this  Code,  with  the  previous 
approval of the Central Government, establish such organisation (by whatever name called) to provide for 
certain benefits to employees in case of sickness, maternity and employment injury: 

Provided that any reference to the State Government in this Code relating to this Chapter shall also 
include reference to the organisation as and when such organisation is established by the State Government. 

(6)  The  organisation  referred  to  in  sub-section  (5)  shall  have  such  structure,  discharge  functions, 

exercise powers and undertake such activities as may be prescribed by the Central Government. 

(7)  The  Corporation  may  establish  and  maintain  in  a  State  such  hospitals,  dispensaries  and  other 
medical and surgical services as it may think fit for the benefit of Insured Persons and (where such medical 
benefit is extended to their families), their families. 

(8) The Corporation may enter into agreement with any local authority, private body or individual in 
regard to the provision of medical treatment and attendance for Insured Persons and (where such medical 
benefit is extended to their families) their families, in any area and sharing the cost thereof. 

(9) The Corporation may also enter into agreement with any local authority, local body or private body 
for commissioning and running Employees' State Insurance hospitals through third party participation for 
providing medical treatment and attendance to Insured Persons and (where such medical benefit has been 
extended to their families), to their families. 

(10) Notwithstanding anything contained in any other provision of this Chapter, the Corporation may, 
in consultation with the State Government, undertake the responsibility for providing medical benefit to 
Insured  Persons  and  (where  such  medical  benefit  is  extended  to  their  families),  to  the  families  of  such 
Insured Persons in the State subject to the condition that the State Government shall share the cost of such 
medical  benefit  in  such  proportion  as  may  be  agreed  upon  between  the  State  Government  and  the 
Corporation. 

(11) In the event of the Corporation exercising its power under sub-section (10), the provisions relating 
to medical benefit under this Chapter shall apply, so far as may be, as if a reference therein to the State 
Government were a reference to the Corporation. 

(12) Notwithstanding anything contained in this Code, in respect of establishments located in the States 
where medical benefit is provided by the Corporation, the Central Government shall be the appropriate 
Government. 

41. General provisions as to benefits.—(1) Save as may be provided in the regulations, no person 

shall be entitled to commute for a lump sum any disablement benefit admissible under this Chapter. 

(2)  Save  as  may  be  provided  in  the  regulations,  no  person  shall  be  entitled  to  sickness  benefit  or 
disablement benefit for temporary disablement on any day on which he works or remains on leave or on a 
holiday in respect of which he receives wages or on any day on which he remains on strike. 

(3) A person who is in receipt of sickness benefit or disablement benefit (other than benefit granted on 

permanent disablement) — 

37 

 
(a) shall remain under medical treatment at a dispensary, hospital, clinic or other institution provided 
under this Chapter, and shall carry out the instructions given by the medical officer or medical attendant 
in-charge thereof; 

(b)  shall  not  while  under  treatment  do  anything  which  might  retard  or  prejudice  his  chances  of 

recovery; 

(c)  shall  not  leave  the  area  in  which  medical  treatment  provided  by  this  Chapter  is  being  given, 
without  the  permission  of the  medical  officer,  medical  attendant  or  such  other authority  as  may  be 
specified in this behalf by the regulations; and 

(d)  shall  allow  himself  to  be  examined  by  any  duly  appointed  medical  officer  or  other  person 

authorised by the Corporation in this behalf. 

(4) An Insured Person shall not be entitled to receive for the same period— 

(a) both sickness benefit and maternity benefit; or 

(b) both sickness benefit and disablement benefit for temporary disablement; or 

(c) both maternity benefit and disablement benefit for temporary disablement. 

(5) Where a person is entitled to more than one of the benefits mentioned in sub-section (4), he shall be 

entitled to choose which benefit he shall receive. 

(6) If a person dies during any period for which he is entitled to a cash benefit under this Chapter, the 
amount of such benefit up to and including the day of his death shall be paid to any person nominated by 
the deceased person in writing in such form as may be specified in the regulations or, if there is no such 
nomination, to the heir or legal representative of the deceased person. 

(7) (a) Any person eligible for availing dependant or disablement benefit under this Chapter shall not 

be entitled to claim Employees’ Compensation from his employer under Chapter VII. 

(b) Any women employee eligible for availing maternity benefit under this Chapter shall not be entitled 

to claim maternity benefit from her employer under Chapter VI. 

(8) Where any person has received any benefit or payment under this Chapter when he is not lawfully 
entitled thereto, he shall be liable to repay to the Corporation the value of the benefit or the amount of such 
payment, or in the case of death, his legal representative shall be liable to repay the same from the assets of 
the deceased devolved on him. 

(9) The value of any benefits received other than cash payments shall be determined by such authority 
as may be specified in the regulations made in this behalf and the decision of such authority shall be final. 

(10)  The  amount  recoverable  under  this  section  may  be  recovered  in  the  manner  specified  under 

sections 129 to 132. 

42. Corporation’s rights when an employer fails to register, etc.— (1) If any employer,— 

(a) fails or neglects to insure under section 28, an employee at the time of his appointment or within 
such  extended  period  as  may  be  prescribed  by  the  Central  Government,  as  a  result  of  which  the 
employee becomes disentitled to any benefit under this Chapter; or 

(b) insures under section 28, an employee on or after the date of accident which resulted in personal 
injury  to  such  employee  which  has  the  effect  of  making  such  employee  disentitled  to  receive  any 
dependant benefit or disablement benefit from the Corporation; or 

(c) fails or neglects to pay any contribution which under this Chapter he is liable to pay in respect of 
any  employee  and  by  reason  thereof  such  employee becomes  disentitled to any  benefit  or  becomes 
entitled to a benefit on a lower scale,  

then, the Corporation may, on being satisfied in the manner prescribed by the Central Government that the 
benefit is payable to the employee, pay to the employee benefit at such rate to which he is entitled or would 
have been entitled if the failure or neglect would not have occurred, and the Corporation shall be entitled 
to  recover  from  the  employer,  subject  to  the  employer  being  given  an  opportunity  of  being  heard,  the 

38 

 
capitalised value of the benefit paid to the employee, to be calculated in such manner as may be prescribed 
by the Central Government: 

Provided that the capitalised value to be calculated may be adjusted for the payment of any contribution 
and interest or damages that the employer is liable to pay for delay in the payment of or non-payment of 
such contribution. 

(2) The amount recoverable under this section may be recovered as if it were an arrear of land revenue 

or recovered in the manner specified under sections 129 to 132. 

43. Liability of owner or occupier of factories, etc., for excessive sickness benefit.— (1) Where the 

Corporation considers that the incidence of sickness among Insured Persons is excessive by reason of— 

(a) insanitary working conditions in a factory or other establishment or the neglect of the owner or 
occupier of the factory or other establishment to observe any health regulations enjoined on him by or 
under any enactment for the time being in force, or 

(b)  insanitary  conditions  of  any  tenements  or  lodgings  occupied  by  Insured  Persons  and  such 
insanitary conditions are attributable to the neglect of the owner of the tenements or lodgings to observe 
any health regulations enjoined on him by or under any enactments for the time being in force, 

then, the Corporation may send to the owner or occupier of the factory or other establishment or to the 
owner of the tenements or lodgings, as the case may be, a claim for the payment of the amount of the extra 
expenditure incurred by the Corporation as sickness benefit; and if the claim is not settled by agreement, 
the  Corporation  may  refer  the  matter,  with  a  statement  in  support  of  its  claim,  to  the  appropriate 
Government. 

(2) If the appropriate Government is of the opinion that a prima facie case for inquiry is made out, it 
may appoint a competent person or persons to hold an inquiry into the matter referred under sub-section 
(1). 

(3) If upon inquiry under sub-section (2), it is proved to the satisfaction of the person or persons holding 
the inquiry that the excess in incidence of sickness among the Insured Persons is due to the default or neglect 
of the owner or occupier of the factory or other establishment or the owner of the tenements or lodgings, as 
the case may be, the said person or persons shall determine, the amount of the extra expenditure incurred 
as sickness benefit as well as the person or persons by whom the whole or any part of such amount shall be 
paid to the Corporation. 

(4) A determination under sub-section (3) may be enforced as if it were a decree for payment of money 

passed in a suit by a Civil Court. 

(5) For the purposes of this section, “owner” of tenements or lodgings shall include any agent of the 
owner and any person who is entitled to collect the rent of the tenements or lodgings as a lessee of the 
owner. 

44. Scheme for other beneficiaries.—Notwithstanding anything contained in this Chapter, the Central 
Government may, by notification, frame, amend, vary or rescind scheme for other beneficiaries and the 
members of their families for providing medical facility in any hospital established by the Corporation in 
any area which is underutilised on payment of user charges, and prescribe the terms and conditions subject 
to which the scheme may be operated. 

Explanation.— For the purposes of this section,— 

(a) “other beneficiaries” means persons other than employees insured under section 28; 

(b) “underutilised  hospital”  means  any  hospital  not  fully  utilised  by  the employees  insured  under 

section 28; and 

(c) “user charges” means the amount which is to be charged from other beneficiaries for medical 

facilities as may be specified in the regulations after prior approval of the Central Government. 

45. Schemes for unorganized workers, gig workers and platform workers.— (1) Notwithstanding 
anything  contained  in  this  Chapter,  the  Central  Government  may,  by  notification,  frame  scheme  for 

39 

 
unorganised workers, gig workers and platform workers and the members of their families for providing 
benefits admissible under this Chapter by the Corporation. 

(2) The  contribution,  user charges,  scale  of  benefits, qualifying  and  eligibility  conditions  and  other 
terms and conditions subject to which the scheme may be operated shall be such as may be specified in the 
scheme. 

46.  Exemption  of  factories  or  other  establishments  belonging  to  Government  or  any  local 
authority.—The appropriate Government may, after consultation with the Corporation, by notification and 
subject to such conditions as may be specified in the notification, exempt any factory or other establishment 
belonging to the Government or any local authority, from the operation of this Chapter if the employees in 
any such factory or other establishment are otherwise in receipt of benefits substantially similar or superior 
to the benefits provided under this Chapter. 

47. Contributions, etc., due to Corporation to have priority over other debts.—Notwithstanding 
anything contained in any other law for the time being in force, any amount due under this Chapter shall be 
the charge on the assets of the establishment to which it relates and shall be paid in priority in accordance 
with the provisions of the Insolvency and Bankruptcy Code, 2016 (31 of 2016). 

48. Constitution of Employees’ Insurance Court.—(1) The State Government shall, by notification, 

constitute an Employees' Insurance Court for such local area as may be specified in the notification. 

(2) The Employees’ Insurance Court shall consist of such number of Judges as the State Government 

may think fit. 

(3) Any person who is or has been a judicial officer or is a legal practitioner of five years' standing shall 

be qualified to be a Judge of the Employees' Insurance Court. 

(4) The State Government may appoint the same Court for two or more local areas or two or more 

Employees’ Insurance Courts for the same local area. 

(5) Where more than one Employees’ Insurance Court has been appointed for the same local area, the 

State Government may by general or special order regulate the distribution of business between them. 

49.Matters to be decided by Employees’ Insurance Court.—(1) If any question or dispute or claim 

arises as to— 

(a) whether any person is an employee within the meaning of this Code relating to this Chapter or 

whether he is liable to pay the employee's contribution; or 

(b) the rate of wages or average daily wages of an employee for the purposes of this Chapter; or 

(c) the rate of contribution payable by an employer in respect of any employee under this Chapter; or 

(d) the person who is or was the employer in respect of any employee for the purposes of this Chapter; 

or 

(e) the right of any person to any benefit under this Chapter and as to the amount and duration thereof; 

or 

(f) any direction issued by the Corporation on a review of any payment of dependants' benefit under 

this Chapter; or 

(g) any other matter which is in dispute between an employer and the Corporation relating to this 
Chapter, or between an employer and a Contractor relating to this Chapter or between a person and the 
Corporation relating to this Chapter or between an employee and an employer or Contractor relating to 
this Chapter, in respect of any contribution or benefit or other dues payable or recoverable under this 
Code relating to this Chapter; or 

(h) claim for the recovery of contributions from the employer under this Code relating to this Chapter; 

or 

(i) claim under sub-section (8) of section 41 for the recovery of the value or amount of the benefits 

received by a person when he is not lawfully entitled thereto; or 

40 

 
(j) claim against an employer under section 42; or 

(k) order of the appellate authority under section 126 in respect of Chapter IV; or 

(l) claim by an employer to recover contributions from any contractor under this Code relating to this 

Chapter; or 

(m) any other claim for the recovery of any benefit admissible under this Chapter, such matter shall 

be decided by the Employers' Insurance Court. 

(2)  No  matter  which  is  in  dispute  between  an  employer  and  the  Corporation  in  respect  of  any 
contribution  or  any  other  dues  under  this  Chapter  shall  be  raised  by  the  employer  in  the  Employees' 
Insurance  Court  unless  he has  deposited  with  that  Court fifty  per cent.  of  the  amount  due  from  him  as 
claimed by the Corporation: 

Provided that the Employees'  Insurance Court may, for reasons to be recorded in writing, waive or 

reduce the amount to be deposited under this sub-section. 

(3) No Civil Court shall have jurisdiction to decide or deal with any question or dispute as specified in 
sub-section (1) or to adjudicate on any liability which by or under this Code relating to this Chapter is to be 
decided by a medical board, or by a medical appeal tribunal or by the Employees' Insurance Court. 

50. Powers of Employees’ Insurance Court.— (1) The Employees' Insurance Court shall have all the 
powers  of  a  Civil  Court  for  the  purposes  of  summoning  and  enforcing  the  attendance  of  witnesses, 
compelling  the  discovery  and  production  of  documents  and  material  objects,  administering  oath  and 
recording evidence and such court shall be deemed to be a Civil Court within the meaning of section 195 
and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 

(2) The Employees'  Insurance Court shall follow such procedure as may be prescribed by the State 

Government. 

(3) All costs incidental to any proceeding before an Employees' Insurance Court shall, subject to such 

rules as may be made in this behalf by the State Government, be in the discretion of that court. 

(4) An order of the Employees' Insurance Court shall be enforceable by it as if it were a decree passed 

in a suit by a Civil Court. 

51.  Proceedings  of  Employees’  Insurance  Courts.—(1)  The  manner  of  commencement  of 
proceedings before the Employees’ Insurance Court, fees and procedure thereof shall be such as may be 
prescribed by the appropriate Government: 

Provided that the limitation for initiating the proceedings by the aggrieved person in the Employees' 

Insurance Court shall be three years from the date on which the cause of action arises: 

Provided further that the “arising of cause of action” in respect of a claim by the Insured Person or 
dependants;  by  the  Corporation  for  recovering  contribution  (including  interests  and  damages)  from  the 
employer; and the claim by the employer for recovering contributions from a Contractor and the time within 
which  such  claims,  recovery  or  contribution,  from  employer  by  the  Corporation  and  recovery  of 
contribution by the employer from the Contractor, shall be as specified in the regulations. 

(2) Any application, appearance or act required to be made or done by any person to, or before, an 
Employees' Insurance Court (other than appearance of a person required for the purpose of his examination 
as  a  witness)  may  be  made  or  done  by  a  legal  practitioner  or  by  an  officer  of  a  registered  trade  union 
authorised in writing by such person or with the permission of that Court, by any other person so authorised. 

(3) An Employees' Insurance Court may submit any question of law for the decision of the High Court 

and if it does so shall decide the question pending before it in accordance with such decision. 

52. Appeal to High Court.— (1) Save as expressly provided in this section, no appeal shall lie from 

an order of an Employees' Insurance Court. 

(2) An appeal shall lie to the High Court from an order of an Employees' Insurance Court, if it involves 

a substantial question of law. 

41 

 
(3) The appeal shall be filed under this section within a period of sixty days from the date of the order 

made by the Employees' Insurance Court. 

(4) The provisions of sections 5 and 12 of the Limitation Act, 1963 (36 of 1963) shall apply to appeals 

under this section. 

(5) Where the Corporation has presented an appeal against an order of the Employees' Insurance Court, 
that Court may, and if so directed by the High Court, shall, pending the decision of the appeal, withhold the 
payment of any sum directed to be paid by the order appealed against. 

CHAPTER V 

GRATUITY 

53. Payment of gratuity.— (1) Gratuity shall be payable to an employee on the termination of his 

employment after he has rendered continuous service for not less than five years,— 

(a) on his superannuation; or 

(b) on his retirement or resignation; or 

(c) on his death or disablement due to accident or disease; or 

(d) on termination of his contract period under fixed term employment; or 

(e) on happening of any such event as may be notified by the Central Government: 

Provided  that  in  case  of  working  journalist  as  defined  in  clause  (f)  of  section  2  of  the  Working 
Journalists  and  Other  Newspaper  Employees  (Condition  of  Service) and  Miscellaneous  Provisions  Act, 
1955 (45 of 1955), the expression “five years” occurring in this sub-section shall be deemed to be three 
years: 

Provided further that the completion of continuous service of five years shall not be necessary where 
the termination of the employment of any employee is due to death or disablement or expiration of fixed 
term employment or happening of any such event as may be notified by the Central Government: 

Provided also that in the case of death of the employee, gratuity payable to him shall be paid to his 
nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, 
the  share  of  such  minor,  shall  be  deposited  with  the  competent  authority  as  may  be  notified  by  the 
appropriate  Government  who  shall  invest the  same  for the  benefit  of  such  minor in  such  bank  or other 
financial institution, as may be prescribed by the appropriate Government, until such minor attains majority. 

(2) For every completed year of service or part thereof in excess of six months, the employer shall pay 
gratuity to an employee at the rate of fifteen days' wages or such number of days as may be notified by the 
Central Government, based on the rate of wages last drawn by the employee concerned: 

Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of 
the total wages received by him for a period of three months immediately preceding the termination of his 
employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account: 

Provided further that in the case of an employee who is employed in a seasonal establishment and who 
is not so employed throughout the year, the employer shall pay the gratuity at the rate of seven days' wages 
for each season: 

Provided  also  that  in  the  case  of  an  employee  employed  on  fixed  term  employment  or  a  deceased 

employee, the employer shall pay gratuity on pro rata basis. 

(3) The amount of gratuity payable to an employee shall not exceed such amount as may be notified by 

the Central Government. 

(4)  For  the  purpose  of  computing  the  gratuity  payable  to  an  employee  who  is  employed,  after  his 
disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the 
wages received by him during that period, and his wages for the period subsequent to his disablement shall 
be taken to be the wages as so reduced. 

42 

 
(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under 

any award or agreement or contract with the employer. 

(6) Notwithstanding anything contained in sub-section (1),— 

(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or 
negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall 
be forfeited to the extent of the damage or loss so caused; 

(b) the gratuity payable to an employee may be wholly or partially forfeited— 

(i) if the services of such employee have been terminated for his riotous or disorderly conduct or 

any other act of violence on his part, or 

(ii) if the services of such employee have been terminated for any act which constitutes an offence 
involving moral turpitude, provided such offence is committed by him in the course of his employment. 

Explanation 1.— For the purposes of this Chapter, employee does not include any such person who 
holds a post under the Central Government or a State Government and is governed by any other Act or by 
any rules providing for payment of gratuity. 

Explanation 2.— For the purposes of this section, disablement means such disablement as incapacitates 
an employee for the work which he was capable of performing before the accident or disease, resulting in 
such disablement. 

Explanation  3.—  For the purposes  of  this section,  it  is  clarified that  in the case of  a  monthly  rated 
employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by 
him by twenty-six and multiplying the quotient by fifteen. 

54. Continuous service.—For the purposes of this Chapter,—(A) an employee shall be said to be in 
continuous service for a period if he has, for that period, been in uninterrupted service, including service 
which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not 
being  absence  in respect  of  which  an order treating  the  absence  as break  in  service  has been passed in 
accordance with the standing orders, rules or regulations governing the employees of the establishment), 
lay-off,  strike  or  a  lock-out  or  cessation  of  work  not  due  to  any  fault  of  the  employee,  whether  such 
uninterrupted or interrupted service was rendered before or after the commencement of this Code; 

(B)  where  an  employee  (not  being  an  employee  employed  in  a  seasonal  establishment)  is  not  in 
continuous service within the meaning of clause (A), for any period of one year or six months, he shall be 
deemed to be in continuous service under the employer— 

(a) for the said period of one year, if the employee during the period of twelve calendar months 
preceding the date with reference to which calculation is to be made, has actually worked under the 
employer for not less than— 

(i) one hundred and ninety days, in the case of any employee employed below the ground in a 

mine or in an establishment which works for less than six days in a week; and 

(ii) two hundred and forty days, in any other case; 

(b) for the said period of six months, if the employee during the period of six calendar months 
preceding the date with reference to which the calculation is to be made, has actually worked under the 
employer for not less than— 

(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an 

establishment which works for less than six days in a week; and 

(ii) one hundred and twenty days, in any other case. 

Explanation.—  For  the  purposes  of  this  clause,  the  number  of  days  on  which  an  employee  has 

actually worked under an employer shall include the days on which— 

43 

 
(i) he has been laid-off under an agreement or as permitted by standing orders made under the 
Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes 
Act, 1947 (14 of 1947), or under any other law applicable to the establishment; 

(ii) he has been on leave with full wages, earned in the previous year; 

(iii) he has been absent due to temporary disablement caused by accident arising out of and in the 

course of his employment; and 

(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of 

such maternity leave does not exceed twenty-six weeks; 

(C) where an employee, employed in a seasonal establishment, is not in continuous service within the 
meaning of clause (A), for any period of one year or six months, he shall be deemed to be in continuous 
service under the employer for such period if he has actually worked for not less than seventy-five per cent. 
of the number of days on which the establishment was in operation during such period. 

55.    Nomination.—(1)  Each  employee,  who  has  completed  one  year  of  service,  shall  make,  a 
nomination within such time, in such form and in such manner, as may be prescribed by the appropriate 
Government. 

(2) An employee may, in his nomination, distribute the amount of gratuity payable to him under this 

Chapter amongst more than one nominee. 

(3) If an employee has a family at the time of making a nomination, the nomination shall be made in 
favour of one or more members of his family, and any nomination made by such employee in favour of a 
person who is not a member of his family shall be void. 

(4) If at the time of making a nomination the employee has no family, the nomination may be made in 
favour of any person or persons but if the employee subsequently acquires a family, such nomination shall 
forthwith  become  invalid  and  the  employee  shall  make,  within  such  time  as  may  be  prescribed  by  the 
appropriate Government, a fresh nomination in favour of one or more members of his family. 

(5) A nomination may, subject to the provisions of sub-sections (3) and (4), be modified by an employee 
at any time, after giving to his employer a written intimation in such form and in such manner as may be 
prescribed by the appropriate Government, of his intention to do so. 

(6) If a nominee predeceases the employee, the interest of the nominee shall revert to the employee 
who shall make a fresh nomination, in the form prescribed by the appropriate Government, in respect of 
such interest. 

(7) Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent 

by the employee to his employer, who shall keep the same in his safe custody. 

56. Determination of amount of gratuity.—(1) A person who is eligible for payment of gratuity under 
this Chapter or any person authorised, in writing, to act on his behalf shall send a written application to the 
employer, within such time and in such form, as may be prescribed by the appropriate Government, for 
payment of such gratuity. 

(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-
section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person 
to whom the gratuity is payable and also to the competent authority specifying the amount of gratuity so 
determined. 

(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes 

payable to the person to whom the gratuity is payable. 

(4) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period 
specified in sub-section (3), the employer shall pay, from the date on which the gratuity becomes payable 
to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central 
Government from time to time for repayment of long term deposits: 

44 

 
Provided that no such interest shall be payable if the delay in the payment is due to the fault of the 
employee and the employer has obtained permission in writing from the competent authority for the delayed 
payment on this ground. 

(5) (a) If there is any dispute as to the amount of gratuity payable to an employee under this Chapter or 
as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the 
person entitled to receive the gratuity, the employer shall deposit with the competent authority such amount 
as he admits to be payable by him as gratuity. 

(b) Where there is a dispute with regard to any matter or matters specified in clause (a), the employer 
or employee or any other person raising the dispute may make an application to the competent authority in 
the form prescribed by the appropriate Government for deciding the dispute. 

(c)  The  competent  authority  shall,  after  due  inquiry  and  after  giving  the  parties  to  the  dispute  a 
reasonable opportunity of being heard, determine the matter or matters in dispute and if, as a result of such 
inquiry  any  amount  is  found  to  be  payable  to  the  employee,  the  competent  authority  shall  direct  the 
employer  to  pay  such  amount  or,  as  the  case  may  be,  such  amount  as  reduced  by  the  amount  already 
deposited by the employer. 

(d)  The  competent  authority  shall  pay  the  amount  deposited,  including  the  excess  amount,  if  any, 

deposited by the employer, to the person entitled thereto. 

(e) As soon as may be after a deposit is made under clause (a), the competent authority shall pay the 

amount of the deposit— 

(i) to the applicant where he is the employee; or 

(ii) where the applicant is not the employee, to the nominee or, as the case may be, the guardian of 
such nominee or heir of the employee if the competent authority is satisfied that there is no dispute as 
to the right of the applicant to receive the amount of gratuity. 

(6) For the purpose of conducting an inquiry under sub-section (5), the competent authority shall have 
the same powers as are vested in a court, while trying a suit, under the Code of Civil Procedure, 1908 (5 of 
1908), in respect of the following matters, namely:— 

(a) enforcing the attendance of any person or examining him on oath; 

(b) requiring the discovery and production of documents; 

(c) receiving evidence on affidavits; 

(d) issuing commissions for the examination of witnesses. 

(7) Any inquiry under this section shall be a judicial proceeding within the meaning of section 193, 

section 228 and for the purpose of section 196 of the Indian Penal Code (45 of 1860). 

(8) Any person aggrieved by an order under sub-section (5) may, within sixty days from the date of the 
receipt  of  the  order,  prefer  an  appeal  to  the  appropriate  Government  or  such  other  authority  as  may  be 
specified by the appropriate Government in this behalf: 

Provided that the appropriate Government or the appellate authority, as the case may be, may, if it is 
satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the said 
period of sixty days, extend the said period by a further period of sixty days: 

Provided further that no appeal by an employer shall be admitted unless at the time of preferring the 
appeal, the appellant either produces a certificate of the competent authority to the effect that the appellant 
has  deposited  with  him  an  amount  equal  to the amount  of  gratuity  required to be  deposited  under  sub-
section (5), or deposits with the appellate authority such amount. 

(9) The appropriate Government or the appellate authority, as the case may be, may, after giving the 
parties to the appeal a reasonable opportunity of being heard, confirm, modify, or reverse the decision of 
the competent authority. 

45 

 
57. Compulsory insurance.—(1) With effect from such date as may be notified by the appropriate 
Government in this behalf, every employer, other than an employer or an establishment belonging to, or 
under the control of, the Central Government or a State Government, shall, subject to the provisions of sub-
section (2), obtain an insurance in the manner prescribed by the Central Government, for his liability for 
payment towards the gratuity under this Chapter, from any insurance company regulated by the Authority 
as defined under clause (b) of sub-section (1) of section 2 of the Insurance Regulatory and Development 
Authority Act, 1999 (41 of 1999): 

Provided that different dates may be appointed for different establishments or class of establishments 

or for different areas. 

(2) The appropriate Government may, subject to such conditions as may be prescribed by the Central 
Government, exempt any employer who had already established an approved gratuity fund in respect of his 
employees and who desires to continue such arrangement, and every employer employing five hundred or 
more  persons  who  establishes  an  approved  gratuity  fund  in  the  manner  prescribed  by  the  Central 
Government from the provisions of sub-section (1). 

(3) For the purposes of effectively implementing the provisions of this section, every employer shall 
within such time as may be prescribed by the Central Government get his establishment registered with the 
competent authority in the manner prescribed by the appropriate Government and no employer shall be 
registered under the provisions of this section unless he has taken an insurance referred to in sub-section 
(1) or has established an approved gratuity fund referred to in sub-section (2). 

(4)  The  appropriate  Government  may  provide  for  the  composition  of  the  Board  of  Trustees  of  the 
approved gratuity fund and for the recovery by the competent authority of the amount of the gratuity payable 
to an employee from the insurer with whom an insurance has been taken under sub-section (1), or as the 
case may be, the Board of Trustees of the approved gratuity fund, in such manner as may be prescribed. 

(5)  Where  an  employer  fails  to  make  any  payment  by  way  of  premium  in  respect  of  the  insurance 
referred  to  in  sub-section  (1)  or  by  way  of  contribution  to  an  approved  gratuity  fund  referred  to  in  
sub-section (2), he shall be liable to pay the amount of gratuity due under this Chapter (including interest, 
if any, for delayed payments) forthwith to the competent authority. 

Explanation.— In this section, “approved gratuity fund” shall have the same meaning as assigned to it 

in sub-section (5) of section 2 of the Income-tax Act, 1961 (43 of 1961). 

58. Competent authority.—(1) The appropriate Government may, by notification, appoint any officer 
of that Government having such qualifications and experience as may be prescribed by that Government to 
be  a  competent  authority  for  implementation  of  any  provision  of  this  Chapter  for  such  area  as  may  be 
specified in the notification. 

(2)  Where  more  than  one  competent  authority  has  been  appointed  for  any  area,  the  appropriate 

Government may, by general or special order, regulate the distribution of business among them. 

(3) Any competent authority may, for the purpose of deciding any matter referred to him for decision 
under this Chapter, choose one or more persons possessing special knowledge of any matter relevant to the 
matter under reference to assist him in holding the inquiry relating thereto. 

CHAPTER VI 

MATERNITY BENEFIT 

59. Employment of, or work by, women prohibited during certain period.—(1) No employer shall 
knowingly employ a woman in any establishment during the six weeks immediately following the day of 
her delivery, miscarriage or medical termination of pregnancy. 

(2) No woman shall work in any establishment during the six weeks immediately following the day of 

her delivery, miscarriage or medical termination of pregnancy. 

(3) Without prejudice to the provisions of section 62, no pregnant woman shall, on  a request being 
made by her in this behalf, be required by her employer to do, during the period specified in sub-section 
(4), any work which is of an arduous nature or which involves long hours of standing or which in any way 

46 

 
is likely to interfere with her pregnancy or the normal development of the foetus or is likely to cause her 
miscarriage or otherwise to adversely affect her health. 

(4) The period referred to in sub-section (3) shall be— 

(a) the period of one month immediately preceding the period of six weeks, before the date of her 

expected delivery; 

(b) any period during the said period of six weeks for which the pregnant woman does not avail of 

leave of absence under section 62. 

Explanation.— For the purposes of this section, the expression “any work of arduous nature” shall mean 

any work which involve or require strenuous effort or is difficult and tiring in nature. 

60. Right to payment of maternity benefit.—(1) Subject to the other provisions of this Code, every 
woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate 
of  the  average  daily  wage  for  the  period  of  her  actual  absence,  that  is  to  say,  the  period  immediately 
preceding the day of her delivery, and any period immediately following that day. 

Explanation.—For the purposes of this sub-section, “the average daily wage” means the average of the 
woman's wages payable to her for the days on which she has worked during the period of three calendar 
months immediately preceding the date from which she absents herself on account of maternity, subject to 
the minimum rate of wage fixed or revised under the Code on Wages, 2019 (29 of 2019). 

(2) No woman shall be entitled to maternity benefit unless she has actually worked in an establishment 
of the employer from whom she claims maternity benefit, for a period of not less than eighty days in the 
twelve months immediately preceding the date of her expected delivery. 

Explanation.— For the purposes of calculating the period under this sub-section, the days on which a 
woman has actually worked in the establishment, the days for which she has been laid off or was on holidays 
declared under any law for the time being in force to be holidays with wages, during the period of twelve 
months immediately preceding the expected date of her delivery shall be taken into account. 

(3) The maximum period for which any woman shall be entitled to maternity benefit shall be twenty-

six weeks of which not more than eight weeks shall precede the expected date of her delivery: 

Provided  that  the  maximum  period  entitled  to  maternity  benefit  by  a  woman  having  two  or  more 
surviving children shall be twelve weeks of which not more than six weeks shall precede the date of her 
expected delivery: 

Provided further that where a woman dies during this period, the maternity benefit shall be payable 

only for the days up to and including the day of her death: 

Provided also that where a woman, having been delivered of a child, dies during her delivery or during 
the period immediately following the date of her delivery for which she is entitled for the maternity benefit, 
leaving behind in either case the child, the employer shall be liable for the maternity benefit for that entire 
period but if the child also dies during the said period, then, for the days up to and including the date of the 
death of the child. 

Explanation.— For the purposes of this sub-section, “child” includes a stillborn child. 

(4) A woman who legally adopts a child below the age of three months or a commissioning mother 
shall be entitled to maternity benefit for a period of twelve weeks from the date the child is handed over to 
the adopting mother or the commissioning mother, as the case may be. 

(5) In case the work assigned to a woman is of such nature that she may work from home, the employer 
may allow her to do so after availing of the maternity benefit for such period and on such conditions as the 
employer and the woman may mutually agree. 

61. Continuance of payment of maternity benefit in certain cases.— Every woman entitled to the 
payment of maternity benefit under this Chapter, shall, notwithstanding the application of Chapter IV to 
the factory or other establishment in which she is employed, continue to be so entitled until she becomes 
qualified to claim maternity benefit under section 32. 

47 

 
62. Notice of claim for maternity benefit and payment thereof.—(1) Any woman employed in an 
establishment  and  entitled to  maternity  benefit  under the  provisions  of  this  Chapter  may  give  notice  in 
writing in such form as may be prescribed by the Central Government, to her employer, stating that her 
maternity benefit and any other amount to which she may be entitled under this Chapter may be paid to her 
or to such person as she may nominate in the notice and that she will not work in any establishment during 
the period for which she receives maternity benefit. 

(2) In the case of a woman who is pregnant, such notice shall state the date from which she will be 

absent from work, not being a date earlier than eight weeks from the date of her expected delivery. 

(3) Any woman who has not given the notice when she was pregnant may give such notice as soon as 

possible after her delivery. 

(4)  On  receipt  of  the  notice,  the  employer  shall  permit  such  woman  to  absent  herself  from  the 

establishment during the period for which she receives the maternity benefit. 

(5) The amount of maternity benefit for the period preceding the date of her expected delivery shall be 
paid in advance by the employer to the woman on production of such proof as may be prescribed by the 
Central Government that the woman is pregnant, and the amount due for the subsequent period shall be 
paid  by  the  employer  to  the  woman  within  forty-eight  hours  of  production  of  such  proof  as  may  be 
prescribed by the Central Government that the woman has been delivered of a child. 

(6) The failure to give notice under this section shall not disentitle a woman to maternity benefit or any 
other amount under this Chapter if she is otherwise entitled to such benefit or amount and in any such case 
an Inspector-cum-Facilitator may either of his own motion or on an application made to him by the woman, 
order the payment of such benefit or amount within such period as may be specified in the order. 

63. Payment of maternity benefit in case of death of a woman.—If a woman entitled to maternity 
benefit or any other amount under this Chapter, dies before receiving such maternity benefit or amount, or 
where the employer is liable for maternity benefit under the second proviso to sub-section (3) of section 60, 
the employer shall pay such benefit or amount to the person nominated by the woman in the notice given 
under section 62 and in case there is no such nominee, to her legal representative. 

64. Payment of medical bonus.—Every woman entitled to maternity benefit under this Chapter shall 
also be entitled to receive from her employer a medical bonus of three thousand five hundred rupees or such 
amount as may be notified by the Central Government, if no pre-natal confinement and post-natal care is 
provided for by the employer free of charge. 

65. Leave for miscarriage etc.—(1) In case of miscarriage, or medical termination of pregnancy, a 
woman shall, on production of such proof as may be prescribed by the Central Government, be entitled to 
leave with wages at the rate of maternity benefit, for a period of six weeks immediately following the day 
of her miscarriage or, as the case may be, her medical termination of pregnancy. 

(2) In case of tubectomy operation, a woman shall, on production of such proof as may be prescribed 
by the Central Government, be entitled to leave with wages at the rate of maternity benefit for a period of 
two weeks immediately following the day of her tubectomy operation. 

(3)  A  woman  suffering  from  illness  arising  out  of  pregnancy,  delivery,  premature  birth  of  child, 
miscarriage or medical termination of pregnancy shall, on production of such proof as may be prescribed 
by the Central Government, be entitled, in addition to the period of absence allowed to her under section 
62, or, as the case may be, under sub-section (1), to leave with wages at the rate of maternity benefit for a 
maximum period of one month. 

66.Nursing breaks.—Every woman delivered of a child who returns to duty after such delivery shall, 
in addition to the interval for rest allowed to her, be allowed in the course of her daily work two breaks of 
such duration as may be prescribed by the Central Government, for nursing the child until the child attains 
the age of fifteen months. 

67. Creche facility.—(1) Every establishment to which this Chapter applies, in which fifty employees 
or such number of employees as may be prescribed by the Central Government, are employed shall have 

48 

 
the  facility  of  crèche  within  such  distance  as  may  be  prescribed  by  the  Central  Government,  either 
separately or along with common facilities: 

Provided that the employer shall allow four visits a day to the crèche by the woman, which shall also 

include the intervals of rest allowed to her: 

Provided further that an establishment may avail common crèche facility of the Central Government, 
State Government, municipality or private entity or provided by non-Governmental organisation or by any 
other organisation or group of establishments who may pool their resources for setting up of common crèche 
in the manner as they may agree for such purpose. 

(2) Every establishment to which this Chapter applies shall intimate in writing and electronically to 
every woman at the time of her initial appointment in such establishment regarding every benefit available 
under this Chapter. 

68.  Dismissal  for  absence  during  pregnancy.—(1)  When  a  woman  absents  herself  from  work  in 
accordance with the provisions of this Chapter, it shall be unlawful for her employer to discharge or dismiss 
her during or on account of such absence or to give notice of discharge or dismissal on such a day that the 
notice will expire during such absence, or to vary to her disadvantage any of the conditions of her service: 

Provided that the discharge or dismissal of a woman at any time during her pregnancy, if the woman 
but for such discharge or dismissal would have been entitled to maternity benefit or medical bonus under 
this Chapter, shall not have the effect of depriving her of the maternity benefit or medical bonus: 

Provided  further that  where  the  dismissal is  for  any  gross  misconduct  as  may  be  prescribed  by  the 
Central Government, the employer may, by order in writing, communicated to the woman, deprive her of 
the maternity benefit or medical bonus, or both. 

(2) Any woman deprived of maternity benefit or medical bonus, or both, or discharged or dismissed 
under sub-section (1), may, within sixty days from the date on which order of such deprivation or discharge 
or dismissal is communicated to her, appeal to the competent authority, and the decision of that authority 
on such appeal, whether the woman should or should not be deprived of maternity benefit or medical bonus 
or both, or discharged or dismissed, shall be final. 

69. No deduction of wages in certain cases.—No deduction from the normal and usual daily wages 
of a woman entitled to maternity benefit under the provisions of this Chapter shall be made by reason only 
of— 

(a) the nature of work assigned to her by virtue of the provisions contained in section 59; or 

(b) breaks for nursing the child allowed to her under the provisions of section 66. 

70. Forfeiture of maternity benefit.—A woman who works for remuneration during the period she 
has been permitted by an employer to absent herself for availing the maternity benefits provided under this 
Chapter shall not be entitled to receive maternity benefit for such period. 

71. Duties of employer.—An abstract of the provisions of this Chapter and the rules relating thereto 
in the language or languages of the locality shall be exhibited in a conspicuous place by the employer in 
every part of the establishment in which women are employed. 

72. Power of Inspector-cum-Facilitator to direct payments to be made.—(1) Any woman claiming 

that,— 

(a) maternity benefit or any other amount to which she is entitled under this Chapter and any person 

claiming that payment due under this Chapter has been improperly withheld; 

(b) her employer has discharged or dismissed her during or on account of her absence from work in 

accordance with the provisions of this Chapter, 

may make a complaint to the Inspector-cum-Facilitator. 

(2) The Inspector-cum-Facilitator may, on receipt of a complaint referred to in sub-section (1), make 

an inquiry or cause an inquiry to be made and if satisfied that— 

49 

 
(a) payment has been wrongfully withheld, may direct the payment to be made in accordance with 

his order in writing; 

(b)  she  has  been  discharged  or  dismissed  during  or  on  account  of  her  absence  from  work  in 

accordance with the provisions of this Chapter, 

may pass such orders as he deems just and proper according to the circumstances of the case. 

(3)  Any  person  aggrieved  by  the  order  of  the  Inspector-cum-Facilitator  under  sub-section  (2)  may, 
within thirty days from the date on which such order is communicated to such person, appeal to the authority 
prescribed by the appropriate Government. 

(4) The decision of the authority referred to in sub-section (3), where an appeal has been preferred to it 
under that sub-section or of the Inspector-cum-Facilitator where no such appeal has been preferred, shall 
be final. 

CHAPTER VII 

EMPLOYEE'S COMPENSATION 

73. Reports of fatal accidents and serious bodily injuries.—(1) Where, by any law for the time being 
in force, notice is required to be given to any authority, by or on behalf of an employer, of any accident 
occurring in his premises which results in death or serious bodily injury, the person required to give the 
notice shall, within seven days of the death or serious bodily injury, send a report to the competent authority 
giving the circumstances attending the death or serious bodily injury: 

Provided that where the State Government has so specified, the person required to give the notice may 
instead of sending such report to the competent authority send it to the authority to whom he is required to 
give the notice. 

Explanation.—For  the  purposes  of  this  sub-section,  “serious  bodily  injury”  means  an  injury  which 
involves, or in all probability will involve the permanent loss of the use of, or permanent injury to, any 
limb, or the permanent loss of or injury to the sight or hearing, or the fracture of any limb, or the enforced 
absence of the injured person from work for a period exceeding twenty days. 

(2) The State Government may, by notification, extend the provisions of sub-section (1) to any class of 
premises  other  than  those  coming  within  the  scope  of  that  sub-section,  and  may,  by  such  notification, 
specify the persons who shall send the report to the competent authority. 

(3) Nothing in this section shall apply to establishments to which Chapter IV, relating to Employees' 

State Insurance Corporation, applies. 

74.  Employer’s  liability  for  compensation.—(1)  If  personal  injury  is  caused  to  an  employee  by 
accident  or  an  occupational  disease  listed  in  the Third  Schedule  arising  out  of and  in the  course  of  his 
employment, his employer shall be liable to pay compensation in accordance with the provisions of this 
Chapter: 

Provided that the employer shall not be so liable— 

(a) in respect of such injury which does not result in the total or partial disablement of the employee 

for a period exceeding three days; and 

(b)  in  respect  of  such  injury,  not  resulting  in  death  or  permanent  total  disablement  caused  by  an 

accident which is directly attributable to— 

(i) the employee having been at the time thereof under the influence of drink or drugs, or 

(ii)  the  wilful  disobedience  of  the  employee  to  an  order  expressly  given,  or  to  a  rule  expressly 

framed, for the purpose of securing the safety of employees, or 

(iii) the wilful removal or disregard by the employee of any safety guard or other device which he 

knew to have been provided for the purpose of securing the safety of employee. 

(2) An accident or an occupational disease referred to in sub-section (1) shall be deemed to arise out of 
and in the course of an employee's employment notwithstanding that he is at the time of the accident or at 

50 

 
the time of contracting the occupational disease, referred to in that sub-section, acting in contravention of 
the provisions of any law applicable to him, or of any orders given by or on behalf of his employer or that 
he is acting without instructions from his employer, if— 

(a) such accident or contracting of such occupational disease would have been deemed so to have 
arisen had the act not been done in contravention as aforesaid or without instructions from his employer, 
as the case may be; and 

(b) the act is done for the purpose of, and in connection with, the employer's trade or business. 

(3) If an employee employed in any employment specified in the Second Schedule contracts any disease 
specified in the Third Schedule, being an occupational disease peculiar to that employment whilst in the 
service of an employer in whose service he has been employed for a continuous period of not less than six 
months, then, such disease shall be deemed to be an injury by accident within the meaning of this section 
and unless the contrary is proved, the accident shall be deemed to have arisen out of and in the course of 
the employment. 

(4)  An  accident  occurring  to  an  employee  while  commuting  from  his  residence  to  the  place  of 
employment  for  duty  or  from  the  place  of employment  to his  residence after  performing  duty,  shall  be 
deemed to have arisen out of and in the course of employment if nexus between the circumstances, time 
and place in which the accident occurred and his employment is established. 

(5) The Central Government or the State Government, after giving, by notification, not less than three 
months'  notice  of  its  intention  so  to  do,  may,  by  a  like  notification,  modify  or  add  any  description  of 
employment to the employments specified in the Second Schedule, and occupational diseases specified in 
the Third Schedule and shall specify in the case of employments so modified or added, the diseases which 
shall be deemed for the purposes of this section to be occupational diseases peculiar to those employments 
respectively, and thereupon the provisions of sub-section (2) shall apply, in the case of a notification by the 
Central Government, within the territories to which this Code extends or, in case of a notification by the 
State Government, within that State as if such diseases had been declared by this Code to be occupational 
diseases peculiar to those employments. 

(6) Save as provided by sub-sections (2), (3) and (4), no compensation shall be payable to an employee 
in respect of any accident or disease unless the accident or disease is directly attributable to a specific injury 
by accident or disease arising out of and in the course of his employment. 

(7) Nothing herein contained shall be deemed to confer any right to compensation on an employee in 
respect of any accident or disease if he has instituted in a civil court a suit for damages in respect of the 
accident or disease against the employer or any other person; and no suit for damages shall be maintainable 
by an employee in any Court of law in respect of such accident or disease— 

(a) if he has instituted a claim to compensation in respect of the accident or disease before a competent 

authority; or 

(b) if an agreement has been made between the employee and his employer providing for the payment 
of compensation in respect of the accident or disease in accordance with the provisions of this Chapter. 

75. Compensation in case of death of or injury in plantation.— If death or injury is caused to any 
worker or a member of his family as a result of the collapse of a house provided by the employer in a 
plantation, and the collapse is not solely and directly attributable to a fault on the part of any occupant of 
the house or to a natural calamity, the employer shall be liable to pay compensation under section 76 and 
the Sixth Schedule, so far as may be applicable. 

Explanation.— For the purposes of this section, the expression “worker” means a person employed in 
a plantation for hire or reward, whether directly or through any agency, to do any work, skilled, unskilled, 
manual or clerical, and includes a person employed on contract for more than sixty days in a year, but does 
not include— 

(i) a medical officer employed in the plantation; 

51 

 
(ii)  any  person  employed  in  the  plantation  (including  any  member  of  the  medical  staff)  whose 
monthly wages exceed the amount as determined by the appropriate Government, by notification, from 
time to time; 

(iii)  any  person  employed  in  the  plantation  primarily  in  a  managerial  or  administrative  capacity, 
notwithstanding that his monthly wages do not exceed the amount as determined by the appropriate 
Government, by notification, from time to time; 

(iv)  any  person  temporarily  employed  in  the  plantation  in  any  work  relating  to  the  construction, 

development or maintenance of buildings, roads, bridges, drains or canals. 

76.  Amount  of  compensation.—(1)  Subject  to  the  provisions  of  this  Chapter,  the  amount  of 

compensation shall be,— 

(a) where death results from the injury, an amount equal to fifty per cent. of the monthly wages of 
the deceased employee multiplied by the relevant factor or an amount as may be notified by the Central 
Government from time to time, whichever is more; 

(b) where permanent total disablement results from the injury, an amount equal to sixty per cent. of 
the monthly wages of the injured employee multiplied by the relevant factor or an amount as may be 
notified by the Central Government from time to time, whichever is more: 

Provided that the Central Government may, by notification, from time to time, enhance the amount of 

compensation specified in clauses (a) and (b). 

Explanation.—For the purposes of clauses (a) and (b), “relevant factor”, in relation to an employee 
means the factor specified in column (3) of the Sixth Schedule relating to factors against the corresponding 
entry in column (2) thereof, specifying the number of years which are the same as the completed years of 
the age of the employee on his last birthday immediately preceding the date on which the compensation fell 
due; 

(c) where permanent partial disablement results from the injury,— 

(i)  in  the  case  of  an  injury  specified  in  Part  II  of  the  Fourth  Schedule,  such  percentage  of  the 
compensation  which  would  have  been  payable  in  the  case  of  permanent  total  disablement  as  is 
specified therein as being the percentage of the loss of earning capacity caused by that injury; and 

(ii)  in  the  case  of  an  injury  not  specified  in  the  Fourth  Schedule,  such  percentage  of  the 
compensation payable in the case of permanent total disablement as is proportionate to the loss of 
earning capacity (as assessed by the medical practitioner) permanently caused by the injury. 

Explanation 1.— For the purposes of this clause, where more injuries than one are caused by the same 
accident, the amount of compensation payable under this head shall be aggregated but not so in any case as 
to exceed the amount which would have been payable if permanent total disablement had resulted from the 
injuries. 

Explanation 2.—In assessing the loss of earning capacity under sub-clause (ii), the medical practitioner 
shall have due regard to the percentage of loss of earning capacity in relation to different injuries specified 
in the Fourth Schedule; 

(d) where temporary disablement, whether total or partial,  results from the  injury, a half-monthly 
payment of the sum equivalent to twenty-five per cent. of monthly wages of the employee, to be paid 
in accordance with the provisions of sub-section (4). 

(2) Notwithstanding anything contained in sub-section (1), while fixing the amount of compensation 
payable to an employee in respect of an accident which occurred outside India, the competent authority 
shall take into account the amount of compensation, if any, awarded to such employee in accordance with 
the law of the country in which the accident occurred and shall reduce the amount fixed by him by the 
amount of compensation awarded to the employee in accordance with the law of that country. 

(3) The Central Government may, by notification, specify for the purposes of sub-section (1), such 

monthly wages in relation to an employee as it may consider necessary. 

52 

 
(4)  The  half-monthly  payment  referred  to  in  clause  (d)  of  sub-section  (1)  shall  be  payable  on  the 

sixteenth day— 

(i) from the date of disablement where such disablement lasts for a period of twenty-eight days or 

more; or 

(ii)  after  the  expiry  of  a  waiting  period  of  three  days  from  the  date  of  disablement,  where  such 
disablement lasts for a period of less than twenty-eight days; and thereafter half-monthly during the 
disablement or during a period of five years, whichever is shorter: 

Provided that— 

(a) there shall be deducted from any lump sum or half-monthly payments to which the employee is 
entitled, the amount of any payment or allowance which the employee has received from the employer 
by way of compensation during the period of disablement prior to the receipt of such lump sum or of 
the first half-monthly payment, as the case may be, and such payment or allowance which the employee 
has received from the employer towards his medical treatment shall not be deemed to be a payment or 
allowance received by him by way of compensation; 

(b) no half-monthly payment shall in any case exceed the amount, if any, by which half the amount 
of the monthly wages of the employee before the accident exceeds half the amount of such wages which 
he is earning after the accident. 

(5) The employee shall be reimbursed, the actual medical expenditure incurred by him for treatment of 

injuries caused during the course of employment, by his employer. 

(6) On the ceasing of the disablement before the date on which any half-monthly payment falls due, 
there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement 
in that half-month. 

(7) If the injury of the employee results in his death, the employer shall, in addition to the compensation 
under sub-section (1), deposit with the competent authority a sum of not less than fifteen thousand rupees 
or  such  amount  as  may  be  prescribed  by  the  State  Government,  for  payment  of  the  same  to  the  eldest 
surviving dependant of the employee towards the expenditure of the funeral of such employee or where the 
employee did not have a dependant or was not living with his dependant at the time of his death, to the 
person who actually incurred such expenditure: 

Provided that  the  Central Government  may,  by  notification  from  time  to  time, enhance  the  amount 

specified in this sub-section. 

77. Compensation to be paid when due and damages for default.—(1) Compensation under section 

76 shall be paid as soon as it falls due. 

(2) In cases where the employer does not accept the liability for compensation to the extent claimed, he 
shall be bound to make provisional payment based on the extent of liability which he accepts, and, such 
payment shall be deposited with the competent authority or made to the employee, as the case may be, 
without prejudice to the right of the employee to make any further claim. 

(3) Where any employer is in default in paying the compensation due under this Chapter within one 

month from the date it fell due, the competent authority shall,— 

(a) direct that the employer shall, in addition to the amount of the arrears, pay interest at such rate as 

may be prescribed by the Central Government, on the amount due; and 

(b) if in his opinion, there is no justification for the delay, direct that the employer shall, in addition 
to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per cent. of such 
amount of arrears by way of damages: 

Provided that an order for the payment of damages shall not be passed under clause (b) without giving 

a reasonable opportunity to the employer to show cause as to why it should not be passed. 

(4) The interest and the damages payable under sub-section (3) shall be paid to the employee or his 

dependant, as the case may be. 

53 

 
78. Method of calculating monthly wages for purposes of compensation.— For the purposes of this 
Chapter, the expression “monthly wages” means the amount of wages deemed to be payable for a month's 
service (whether the wages are payable by the month or by whatever other period or at piece rates), and 
calculated as follows, namely:— 

(a) where the employee has, during a continuous period of not less than twelve months immediately 
preceding  the  accident, been  in the service  of the employer  who  is  liable  to  pay  compensation, the 
monthly  wages  of  the  employee  shall  be  one-twelfth  of  the  total  wages  which  have  fallen  due  for 
payment to him by the employer in the last twelve months of that period; 

(b) where the whole of the continuous period of service immediately preceding the accident during 
which the employee was in the service of the employer who is liable to pay the compensation was less 
than one month, the monthly wages of the employee shall be the average monthly amount which, during 
the twelve months immediately preceding the accident, was being earned by an employee employed on 
the  same  work  by  the  same  employer,  or,  if  there  was  no  employee  so  employed,  by  an  employee 
employed on similar work in the same locality; 

(c) in other cases including cases in which it is not possible for want of necessary information to 
calculate the monthly wages under clause (b), the monthly wages shall be thirty times the total wages 
earned in respect of the last continuous period of service immediately preceding the accident from the 
employer who is liable to pay compensation, divided by the number of days comprising such period. 

Explanation.—For the purposes of this section, “a period of service” shall be deemed to be continuous 

which has not been interrupted by a period of absence from work exceeding fourteen days. 

79. Review.—(1) Any half-monthly payment payable under this Chapter, either under an agreement 
between  the  parties  or  under  the  order  of  a  competent  authority,  may  be  reviewed  by  the  competent 
authority, on the application either of the employer or of the employee accompanied by the certificate of a 
medical  practitioner  that  there  has  been  a  change  in  the  condition  of  the  employee  or,  subject  to  such 
conditions as may be prescribed by the State Government, on application made without such certificate. 

(2)  Any  half-monthly  payment  may,  on  review  under  this  section,  subject  to  the  provisions  of  this 
Chapter,  be  continued,  increased,  decreased  or  ended,  or  if  the  accident  is  found  to  have  resulted  in 
permanent disablement, be converted to the lump sum to which the employee is entitled less any amount 
which he has already received by way of half-monthly payments. 

80. Commutation of half-monthly payments.—Any right to receive half-monthly payments may, by 
agreement between the parties or, if the parties cannot agree and the payments have been continued for not 
less  than  six  months,  on  the  application  of  either  party  to  the  competent  authority  be  redeemed  by  the 
payment of a lump sum of such amount as may be agreed to by the parties or determined by the competent 
authority, as the case may be. 

81.  Distribution  of  compensation.—(1)  No  payment  of  compensation  in  respect  of  an  employee 
whose injury has resulted in death, and no payment of a lump sum as compensation to a woman or a person 
under a legal disability, shall be made otherwise than by deposit with the competent authority, and no such 
payment made directly by an employer shall be deemed to be a payment of compensation: 

Provided that, in the case of a deceased employee, an employer may make to any dependant, advances 
on account of compensation of an amount equal to three months' wages of such employee and so much of 
such  amount  as  does  not  exceed  the  compensation  payable  to  that  dependant  shall  be  deducted  by  the 
competent authority from such compensation and repaid to the employer. 

(2) Any other sum amounting to not less than five thousand rupees which is payable as compensation 

may be deposited with the competent authority on behalf of the person entitled thereto. 

(3) The receipt of the competent authority shall be a sufficient discharge in respect of any compensation 

deposited with him. 

(4) (a) On the deposit of any money under sub-section (1) as compensation in respect of a deceased 
employee, the competent authority shall, if he thinks necessary, cause notice to be published or to be served 

54 

 
on each dependant in such manner as he thinks fit, calling upon the dependants to appear before him on 
such date as he may fix for determining the distribution of the compensation. 

(b)  If  the  competent  authority  is  satisfied  after  any  inquiry  which  he  may  deem  necessary,  that  no 

dependant exists, he shall repay the balance of the money to the employer by whom it was paid. 

(c) The competent authority shall, on an application by the employer, furnish a statement showing in 

detail all disbursements made. 

(5) The compensation deposited in respect of a deceased employee shall, subject to any deduction made 
under sub-section (1), be apportioned by order by the competent authority among the dependants of the 
deceased employee or any of them in such proportion as the competent authority thinks fit, or may, in the 
discretion of the competent authority, be allotted to any one dependant: 

Provided that the competent authority shall not make any order under this sub-section without hearing 
the dependants and shall record reasons in the order for the apportionment of such compensation among 
dependants or any of them, as the case may be. 

(6) Where any compensation deposited with the competent authority is payable to any person, other 
than a woman or a person under legal disability, the competent authority may pay the compensation to the 
person entitled thereto. 

(7) Where any lump sum deposited with the competent authority is payable to a woman or a person 
under a legal disability, such sum may be invested, applied or otherwise dealt with for the benefit of the 
woman, or of such person during his disability, in such manner as the competent authority may direct; and 
where a half-monthly payment is payable to any person under a legal disability, the competent authority 
may, of his own motion or on an application made to him in this behalf, order that the payment be made 
during the disability to any dependant of the employee or to any other person, whom the competent authority 
thinks fit to provide for the welfare of the employee. 

(8) Where, on application made to him in this behalf or otherwise, the competent authority is satisfied 
that,  on  account  of  neglect  of  children  on  the  part  of  a  parent  or  on  account  of  the  variation  of  the 
circumstances of any dependant or for any other sufficient cause, an order of the competent authority as to 
the distribution of any sum paid as compensation or as to the manner in which any sum payable to any such 
dependant is to be invested, applied or otherwise dealt with, ought to be varied, the competent authority 
may make such orders for the variation of the former order as he thinks just in the circumstances of the 
case: 

Provided that no such order prejudicial to any person shall be made unless such person has been given 
an opportunity of showing cause as to why the order should not be made, or shall be made in any case in 
which it would involve the repayment by a dependant of any sum already paid to him. 

(9) Where the competent authority varies any order under sub-section (8) by reason of the fact that 
payment  of  compensation  to  any  person  has  been  obtained  by  fraud,  impersonation  or  other  improper 
means, any amount so paid to or on behalf of such person may be recovered in the manner as specified in 
sub-section (10). 

(10)  The  competent  authority  may  recover  as  an  arrear  of  land  revenue  any  amount  referred  to  in  
sub-section (9), and for such purpose the competent authority shall be deemed to be a public officer within 
the meaning of section 5 of the Revenue Recovery Act, 1890 (1 of 1890). 

82. Notice and claim.—(1) No claim for compensation shall be entertained by a competent authority 
unless notice of the accident has been given in the manner hereinafter provided as soon as practicable after 
the happening thereof and unless the claim is preferred before him within two years of the occurrence of 
the accident or, in case of death, within two years from the date of death: 

Provided that where the accident is the contracting of a disease in respect of which the provisions of 
sub-section (3) of section 74 are applicable, the accident shall be deemed to have occurred on the first of 
the days during which the employee was continuously absent from work in consequence of the disablement 
caused by the disease: 

55 

 
Provided further that in case of partial disablement due to the contracting of any such disease and which 
does not force the employee to absent himself from work, the period of two years shall be counted from the 
day the employee gives notice of the disablement to his employer: 

Provided  also  that  if  an  employee  who,  having  been  employed  in  an  employment  for  a  continuous 
period specified under sub-section (3) of section 74 in respect of that employment, ceases to be so employed 
and develops symptoms of an occupational disease peculiar to that employment within two years of the 
cessation of employment, the accident shall be deemed to have occurred on the day on which the symptoms 
were first detected. 

(2) The want of or any defect or irregularity, in a notice given under sub-section (1), shall not be a bar 

to the entertainment of a claim— 

(a) if the claim is preferred in respect of the death of an employee resulting from an accident which 
occurred on the premises of the employer, or at any place where the employee at the time of the accident 
was working under the control of the employer or of any person employed by him, and the employee 
died on such premises or at such place, or on any premises belonging to the employer, or died without 
having left the vicinity of the premises or place where the accident occurred, or 

(b) if the employer or any one of several employers or any person responsible to the employer for the 
management of any branch of the trade or business in which the injured employee was employed had 
knowledge of the accident from any other source at or about the time when it occurred: 

Provided that the competent authority may entertain and decide any claim to compensation in any case 
notwithstanding  that  the  notice  has  not  been  given,  or  the  claim  has  not  been  preferred  in  due  time  as 
provided under sub-section (1), if he is satisfied that the failure so to give the notice or prefer the claim, as 
the case may be, was due to sufficient cause. 

(3) Every such notice shall give the name and address of the person injured and shall state the cause of 
the injury and the date on which the accident happened, and shall be served on the employer or upon any 
one of several employers, or upon any person responsible to the employer for the management of any branch 
of the trade or business in which the injured employee was employed. 

(4) The appropriate Government may require that any class of employers as may be prescribed by that 
Government shall maintain, at their premises at which employees are employed, a notice-book, in such 
form as may be prescribed by that Government, which shall be readily accessible at all reasonable times to 
any injured employee employed on the premises and to any person acting bona fide on his behalf. 

(5)  A  notice  under  this  section  may  be  served  by  delivering  it  at,  or  sending  it  by  registered  post 
addressed to, the residence or any office or place of business of the person on whom it is to be served, or 
where possible, electronically or, where a notice-book is maintained, by entry in the notice-book. 

83. Special provisions relating to accidents occurring outside Indian territory.—(1) The provisions 
of this section shall, subject to the modifications specified in this section, apply in case of employees who 
are— 

(a) masters of ships or seamen; or 

(b) captain and other members of crew of aircraft; 

(c) persons recruited by companies registered in India and working as such abroad; 

(d) persons sent for work abroad along with motor vehicles registered under the Motor Vehicles Act, 

1988 (59 of 1988) as drivers, helpers, mechanics, cleaners or other employees. 

(2) The notice of the accident and the claim for compensation by a person injured may be served on the 

following persons, as if they were the employer— 

(a) in case of accident where the person injured is a seamen, but not the master of the ship, on the 

master of the ship; 

(b) in case of accident where the person injured is a member of crew of an aircraft, but not the captain 

of the aircraft, on the captain of the aircraft; 

56 

 
(c) in case of persons recruited by companies registered in India and working as such abroad, on the 

local agent of the company; 

(d) in case of persons sent for work abroad along with motor vehicles as drivers, helpers, mechanics, 
cleaners or other employees, on the local agent of the owner of the motor vehicle, in the country of the 
accident: 

Provided  that  where  the  accident  happened  and  the  disablement  commenced  on  board,  the  ship  or 
aircraft, as the case may be, then, it shall not be necessary for any seaman or members of the crew of aircraft 
to give any notice of the accident. 

(3) The claim of compensation shall be made— 

(a) in the case of the death of an employee referred to in sub-section (1), one year after the news of 

the death has been received by the claimant; 

(b) in the case where the ship or the aircraft as the case may be, has been or is deemed to have been 
lost with all hands, eighteen months of the date on which the ship or the aircraft was, or is deemed to 
have been, so lost: 

Provided  that  the  competent  authority  may  entertain  any  claim  to  compensation  in  any  case 
notwithstanding that the claim has not been preferred in due time as provided in this sub-section, if he is 
satisfied that the failure so to prefer the claim was due to sufficient cause. 

(4) Where an injured employee referred to in sub-section (1) is discharged or left behind in any part of 
India or in any foreign country, then, any depositions taken by any Judge or Magistrate in that part or by 
any Consular Officer in the foreign country and transmitted by the person by whom they are taken to the 
Central  Government  or  any  State  Government  shall,  in  any  proceedings  for  enforcing  the  claim,  be 
admissible in evidence— 

(a) if the deposition is authenticated by the signature of the Judge, Magistrate or Consular Officer 

before whom it is made; 

(b) if the defendant or the person accused, as the case may be, had an opportunity by himself or his 

agent to cross-examine the witness; and 

(c) if the deposition was made in the course of a criminal proceeding, on proof that the deposition 

was made in the presence of the person accused,  

and it shall not be necessary in any case to prove the signature or official character of the person appearing 
to have signed any such deposition and a certificate by such person that the defendant or the person accused 
had an opportunity of cross-examining the witness and that the deposition if made in a criminal proceeding 
was made in the presence of the person accused shall, unless the contrary is proved, be sufficient evidence 
that he had that opportunity and that it was so made. 

(5) No half-monthly payment shall be payable in respect of the period during which the owner of the 
ship is, under any law for the time being in force relating to merchant shipping, liable to defray the expenses 
of maintenance of the injured master or seaman. 

(6) Failure to give a notice or make a claim or commence proceedings within the time required by this 
section shall not be a bar to the maintenance of proceedings under this Chapter in respect of any personal 
injury, if such proceedings under this Chapter are commenced within one month from the date on which 
the  certificate  of  the  State  to  that  effect  Government  was  furnished  to  the  person  commencing  the 
proceedings. 

84. Medical examination.—(1) Where an employee has given notice of an accident, he, shall, if the 
employer, before the expiry of three days from the time at which service of the notice has been effected, 
offers to have him examined free of charge by a medical practitioner, submit himself for such examination, 
and any employee who is in receipt of a half-monthly payment under this Chapter shall, if so required, 
submit himself for such examination from time to time: 

Provided  that  an  employee  shall  not  be  required  to  submit  himself  for  examination  by  a  medical 

practitioner at more than such frequent interval as may be prescribed by the State Government. 

57 

 
(2)  If  an  employee,  on  being  required  to  do  so  by  the  employer  under  sub-section  (1)  or  by  the 
competent authority at any time, refuses to submit himself for examination by a medical practitioner or in 
any way obstructs the same, his right to compensation shall be suspended during the continuance of such 
refusal  or  obstruction  unless  in  the  case  of  refusal,  he  was  prevented  by  any  sufficient  cause  from  so 
submitting himself. 

(3) If an employee, before the expiry of the period within which he is liable under sub-section (1) to be 
required to submit himself for medical examination, voluntarily leaves the vicinity of the place in which he 
was employed without having been so examined, his right to compensation shall be suspended until he 
returns and offers himself for such examination: 

Provided that where such employee proves before the medical practitioner that he could not so submit 
himself for medical examination due to the circumstances beyond his control and he was also handicapped 
to communicate such information in writing, the medical practitioner may after recording such reasons in 
writing, condone the delay and his right to compensation shall be revived as if no such suspension was 
made. 

(4) Where an employee, whose right to compensation has been suspended under sub-section (2) or sub-
section (3), dies without having submitted himself for medical examination as required by either of those 
sub-sections,  the  competent  authority  may,  if  he  thinks  fit,  direct  the  payment  of  compensation  to  the 
dependants of the deceased employee. 

(5)  Where  under  sub-section  (2)  or  sub-section  (3),  a  right  to  compensation  is  suspended,  no 
compensation  shall  be  payable  in  respect  of  the  period  of  suspension,  and,  if  the  period  of  suspension 
commences before the expiry of the waiting period referred to in clause (ii) of sub-section (4) of section 
76, the waiting period shall be increased by the period during which the suspension continues. 

(6) Where an injured employee has refused to be attended by a medical practitioner whose services 
have been offered to him by the employer free of charge or having accepted such offer has deliberately 
disregarded the instructions of such medical practitioner, then, if it is proved that the employee has not 
thereafter been regularly attended by a medical practitioner or having been so attended has deliberately 
failed  to  follow  his  instructions  and  that  such  refusal,  disregard  or  failure  was  unreasonable  in  the 
circumstances  of  the  case  and  that  the  injury  has  been  aggravated  thereby,  the  injury  and  resulting 
disablement shall be deemed to be of the same nature and duration as they might reasonably have been 
expected to be if the employee had been regularly attended by a medical practitioner, whose instructions he 
had followed, and compensation, if any, shall be payable accordingly. 

85. Contracting.—(1) Where any employer in the course of or for the purposes of his trade or business 
contracts with a contractor for the execution by or under the contractor of the whole or any part of any work 
which is ordinarily part of the trade or business of the employer, the employer shall be liable to pay to any 
employee employed in the execution of the work any compensation, which he would have been liable to 
pay if that employee had been immediately employed by him; and that the amount of compensation shall 
be calculated with reference to the wages of the employee under the employer by whom he is immediately 
employed. 

(2) Where  the  employer  is  liable to  pay  compensation  under this  section, he  shall be  entitled to  be 
indemnified  by  the  contractor, or any  other  person  from  whom  the  employee  could  have  recovered the 
compensation  and  where  a  contractor  who  is  himself  an  employer  is  liable  to  pay  compensation  or  to 
indemnify an employer under this section, he shall be entitled to be indemnified by any person standing to 
him in relation of a contractor from whom the employee could have recovered the compensation, and all 
questions as to the right to and the amount of any such indemnity shall, in default of agreement, be settled 
by the competent authority. 

(3) Nothing in this section shall be construed as preventing an employee from recovering compensation 

referred to in sub-section (2) from the contractor instead of the employer. 

(4) The provisions of this section shall not apply in any case where the accident occurred elsewhere 
than on, in or about the premises on which the employer has undertaken or usually undertakes, as the case 
may be, to execute the work or which are otherwise under his control or management. 

58 

 
86. Remedies of employer against stranger.—Where an employee has recovered compensation in 
respect of any injury caused under circumstances creating a legal liability of some person other than the 
person by whom the compensation was paid to pay damages in respect thereof, the person by whom the 
compensation was paid and any person who has been called on to pay an indemnity under section 85 shall 
be entitled to be indemnified by the person so liable to pay damages as aforesaid. 

87. Insolvency of employer.—(1) Where any employer has entered into a contract with any insurers 
in respect of any liability under this Chapter to any employee, then, in the event of the employer becoming 
insolvent or making a composition or scheme of arrangement with his creditors or, if the employer is a 
company,  in  the  event  of  the  company  having  commenced to  be  wound  up, the  rights  of the  employer 
against the insurers as respects that liability shall, notwithstanding anything in any law for the time being 
in force relating to insolvency or the winding up of companies, be transferred to and vest in the employee, 
and upon any such transfer the insurers shall have the same rights and remedies and be subject to the same 
liabilities as if they were the employer, so, however, that the insurers shall not be under any greater liability 
to the employee than they would have been under the employer. 

(2)  If  the  liability  of  the  insurers  to  the  employee  is  less  than  the  liability  of  the  employer  to  the 
employee, the burden of proof shall lie on the employee for the balance in the insolvency proceedings or 
liquidation. 

(3) Where in any case such as is referred to in sub-section (1), the contract of the employer with the 
insurers is void or voidable by reason of non-compliance on the part of the employer with any terms or 
conditions of the contract (other than a stipulation for the payment of premium), the provisions of that sub-
section shall apply as if the contract were not void or voidable, and the insurers shall be entitled to prove in 
the insolvency proceedings or liquidation for the amount paid to the employee: 

Provided that the provisions of this sub-section shall not apply in any case in which the employee fails 
to give notice to the insurers of the happening of the accident and of any resulting disablement as soon as 
practicable after he becomes aware of the institution of the insolvency or liquidation proceedings. 

(4) There shall be deemed to be included among the debts which under the Insolvency and Bankruptcy 
Code,  2016  (31  of  2016)  or  under  the  provisions  of  the  Companies  Act,  2013  (18  of  2013)  are  in  the 
distribution of the assets of an insolvent or in the distribution of the assets of a company being wound up 
to be paid in priority to all other debts, the amount due in respect of any compensation, the liability accrued 
before the date of the order of adjudication of the insolvent or the date of the commencement of the winding 
up, as the case may be, and the provisions of that Code and Act shall have effect accordingly. 

(5) Where the compensation is a half-monthly payment, the amount due in respect thereof shall, for the 
purposes of this section, be taken to be the amount of the lump sum for which the half-monthly payment 
could,  if  redeemable,  be  redeemed  if  applications  were  made  for  that  purpose  under  section  80,  and  a 
certificate of the competent authority as to the amount of such sum shall be conclusive proof thereof. 

(6) The provisions of sub-section (4) shall apply in the case of any amount for which an insurer is 
entitled to prove under sub-section (3), but otherwise those provisions shall not apply where the insolvent 
or  the  company  being  wound  up  has  entered  into  such  a  contract  with  insurers  as  is  referred  to  in  
sub-section (1). 

(7) The provisions of this section shall not apply where a company is wound up voluntarily merely for 

the purposes of reconstruction or of amalgamation with another company. 

88.  Power  to  required  from  employers  statements  regarding  fatal  accidents.—(1)  Where  a 
competent  authority  receives  information  from  any  source  that  an  employee  has  died  as  a  result  of  an 
accident  arising  out  of  and  in  the  course  of  his  employment,  he  may  send  by  registered  post  or  where 
possible, electronically a notice to the employee's employer requiring him to submit, within thirty days of 
the service of the notice, a statement, in such form as may be prescribed by the State Government, giving 
the  circumstances  attending  the  death  of  the  employee,  and  indicating  whether,  in  the  opinion  of  the 
employer, he is or is not liable to deposit compensation on account of the death and a copy of such notice 
shall  also  be  sent  by  the  competent  authority  in  the  same  manner  to  the  dependants  of  such  employee 
ascertained by the competent authority. 

59 

 
(2) If the employer is of the opinion that he is liable to deposit compensation, he shall make the deposit 

within thirty days of the service of the notice. 

(3)  If  the  employer  is  of  the  opinion  that  he  is  not  liable  to  deposit  compensation,  he  shall  in  his 

statement indicate the grounds on which he disclaims liability. 

(4) Where the employer has so disclaimed liability, the competent authority, after such inquiry as he 
may think fit, may inform any of the dependants of the deceased employee, that it is open to the dependants 
to prefer a claim for compensation, and may give them such other further information as he may think fit. 

(5) Where in the opinion of the competent authority, a dependant of the deceased employee is not in a 
position to engage an advocate to file a claim for compensation, the competent authority may provide an 
advocate to such dependant, from the panel of advocates maintained by the State Government. 

89. Registration of agreements.— (1) Where the amount of any lump sum payable as compensation 
has been settled by agreement, whether by way of redemption of a half-monthly payment or otherwise, or 
where  any  compensation  has  been  so  settled  as  being  payable  to  a  woman,  or  a  person  under  a  legal 
disability, a memorandum thereof shall be sent by the employer to the competent authority, who shall, on 
being satisfied as to its genuineness, record the memorandum in a register, electronically or otherwise, in 
such manner as may be prescribed by the appropriate Government: 

Provided that— 

(a) no such memorandum shall be recorded before seven days after communication by the competent 

authority of notice to the parties concerned; 

(b) the competent authority may at any time rectify the register; 

(c) where it appears to the competent authority that an agreement as to the payment of a lump sum 
whether  by  way  of  redemption  of  a  half-monthly  payment  or  otherwise,  or  an  agreement  as  to  the 
amount  of  compensation  payable,  to  a  woman  or  a  person  under  a  legal  disability  ought  not  to  be 
registered by reason of the inadequacy of the sum or amount, or by reason of the agreement having 
been obtained by fraud or undue influence or other improper means, the competent authority may refuse 
to record the memorandum of the agreement and may make such order including an order as to any 
sum already paid under the agreement, as the competent authority thinks just in the circumstances. 

(2) An agreement for the payment of compensation which has been registered under sub-section (1) 
shall be enforceable under this Code notwithstanding anything contained in the Indian Contract Act, 1872 
(9 of 1872), or in any other law for the time being in force. 

(3) Where a memorandum of any agreement, the registration of which is required under this section, is 
not sent to the competent authority as required by this section, the employer shall be liable to pay the full 
amount of compensation which he is liable to pay under the provisions of this Chapter, and notwithstanding 
anything contained in the proviso to sub-section (1) of section 76, shall not, unless the competent authority 
otherwise  directs,  be  entitled  to  deduct  more  than  half  of  any  amount  paid  to  the  employee  by  way  of 
compensation whether under the agreement or otherwise. 

90.  Reference  to  competent  authority.—(1)  If  any  question  arises  in  any  proceedings  under  this 
Chapter as to the liability of any person to pay compensation (including any question as to whether a person 
injured is or is not an employee) or as to the amount or duration of compensation (including any question 
as  to  the  nature  or  extent  of  disablement),  the  question  shall,  in  default  of  agreement,  be  settled  by  a 
competent authority. 

(2) No Civil Court shall have jurisdiction to settle, decide or deal with any question which is by or 
under this Chapter required to be settled, decided or dealt with by a competent authority or to enforce any 
liability incurred under this Chapter. 

91. Appointment of competent authority.—(1) The State Government may, by notification, appoint 
any person who is or has been a member of a State Judicial Service for a period of not less than five years 
or is or has been for not less than five years an advocate or is or has been a Gazetted Officer for not less 
than five years having educational qualifications and experience in personnel management, human resource 
development, industrial relations and legal affairs or such other experience and qualifications as may be 

60 

 
prescribed by the appropriate Government to be a competent authority for the purposes of this Chapter and 
for such area as may be specified in the notification. 

(2) Where more than one competent authority has been appointed for any area, the State Government 

may, by general or special order, regulate the distribution of business amongst them. 

(3) Any competent authority may, for the purpose of deciding any matter referred to him for decision 
under this Chapter, choose one or more persons possessing special knowledge of any matter relevant to the 
matter under inquiry to assist him in holding the inquiry. 

92. Venue of proceedings and transfer.— (1) Where any matter under this Chapter is to be done by 
or before a competent authority, the same shall, subject to the provisions of this Chapter and in the manner 
prescribed in this behalf by the State Government, be done by or before the competent authority for the area 
in which— 

(a) the accident took place which resulted in the injury; or 

(b) the employee or in case of his death, the dependant claiming the compensation ordinarily resides; 

or 

(c) the employer has his registered office: 

Provided that no matter shall be processed before or by a competent authority, other than the competent 
authority  having  jurisdiction  over  the  area  in  which  the  accident  took  place,  without  his  giving  notice 
electronically or otherwise in the manner prescribed by the Central Government to the competent authority 
having jurisdiction over the area and the State Government concerned: 

Provided further that, where the employee, being the master of a ship or a seaman or the captain or a 
member of the crew of an aircraft or an employee in a motor vehicle or a company, meets with the accident 
outside India, any such matter may be done by or before a competent authority for the area in which the 
owner or agent of the ship, aircraft or motor vehicle resides or carries on business or the registered office 
of the company is situate, as the case may be. 

(2)  If  a  competent  authority,  other  than  the  competent  authority  with  whom  any  money  has  been 
deposited  under  section  81,  proceeds  with  a  matter  under  this  Chapter,  the  former  may  for  the  proper 
disposal of the matter call for transfer of any records or moneys remaining with the latter and on receipt of 
such a request, he shall comply with the same. 

(3) If a competent authority is satisfied that any matter arising out of any proceedings pending before 
him can be more conveniently dealt with by any other competent authority, whether in the same State or 
not,  he  may,  subject  to  rules  made  under  this  Code  relating  to  this  Chapter,  order  such  matter  to  be 
transferred  to  such  other  competent  authority  either  for  report  or  for  disposal,  and,  if  he  does  so,  shall 
forthwith transmit to such other competent authority all documents relevant for the decision of such matter 
and, where the matter is transferred for disposal, shall also transmit in the manner as may be prescribed by 
the Central Government any money remaining in his hands or invested by him for the benefit of any party 
to the proceedings: 

Provided that the competent authority shall not, where any party to the proceedings has appeared before 
him, make any order of transfer relating to the distribution among dependants of a lump sum without giving 
such party an opportunity of being heard. 

(4) The competent authority to whom any matter is so transferred shall, subject to rules made under this 
Code relating to this Chapter, inquire therein to and, if the matter was transferred for report, return his report 
thereon or, if the matter was transferred for disposal, continue the proceedings as if they had originally 
commenced before him. 

(5) On receipt of a report from a competent authority to whom any matter has been transferred for report 
under sub-section (3), the competent authority by whom it was referred shall decide the matter referred to 
in conformity with such report. 

(6) The State Government may transfer any matter from any competent authority appointed by it to any 

other competent authority appointed by it. 

61 

 
93.  Form  of  application.—(1)  Where  an  accident  occurs  in  respect  of  which  liability  to  pay 
compensation under this Chapter arises, a claim for such compensation may, subject to the provisions of 
this Chapter, be made before the competent authority. 

(2)  Subject  to  the  provisions  of  sub-section  (1),  no  application  for  the  settlement  of  any  matter  by 
competent  authority,  other  than  an  application  by  a  dependant  or  joint  application  by  dependants  for 
compensation, shall be made unless and until some question has arisen between the parties in connection 
therewith which they have been unable to settle by agreement. 

(3)  An  application  to  a  competent  authority  for  claim  under  sub-section  (1)  or  settlement  under  
sub-section (2) may be made electronically or otherwise in such form and in such manner accompanied by 
such fee, if any, as may be prescribed by the Central Government. 

(4) The time-limit  for the disposal  of  applications  under this section  and  the costs  incidental to  the 
proceedings under this section to be imposed by the competent authority shall be such as may be prescribed 
by the State Government. 

94. Power of competent authority to require further deposit in cases of fatal accident.—(1) Where 
any sum has been deposited by an employer as compensation payable in respect of an employee whose 
injury has resulted in death, and in the opinion of the competent authority such sum is insufficient, the 
competent authority may, by notice in writing stating his reasons, call upon the employer to show cause 
why he should not make a further deposit within such time as may be stated in the notice. 

(2) If the employer fails to show cause to the satisfaction of the competent authority, the competent 
authority may make an award determining the total amount payable, and requiring the employer to deposit 
the deficiency. 

95.  Powers  and  procedure  of  competent  authority.—The  competent  authority  shall  have  all  the 
powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking 
evidence on oath (which such competent authority is hereby empowered to impose) and of enforcing the 
attendance  of  witnesses  and  compelling  the  production  of  documents  and  material  objects,  and  the 
competent authority shall be deemed to be a Civil Court for all the purposes of section 195 and of Chapter 
XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 

96. Appearance of parties.— Any appearance, application or act required to be made or done by any 
person before or to a competent authority (other than an appearance of a party which is required for the 
purpose  of  his  examination  as  a  witness)  may  be  made  or  done  on  behalf  of  such  person  by  a  legal 
practitioner or by an official of an Insurance Company or a registered Trade Union or by an Inspector-cum-
Facilitator appointed under sub-section (1) of section 122 or by any other officer specified by the State 
Government in this behalf, authorised in writing by such person, or, with the permission of the competent 
authority, by any other person so authorised. 

97. Method of recording evidence.—The competent authority shall make a brief memorandum of the 
substance  of  the  evidence  of  every  witness  as  the  examination  of  the  witness  proceeds,  and  such 
memorandum shall be authenticated under the hand of the competent authority or in the manner as may be 
prescribed by the State Government and shall form part of the record: 

Provided that, if the competent authority is prevented from making such memorandum, he shall record 
the  reason  of  his  inability  to  do  so  and  shall  cause  such  memorandum  to  be  made  in  writing  from  his 
dictation and shall sign the same, and such memorandum shall form part of the record: 

Provided further that the evidence of any medical witness shall be taken down as nearly as may be word 

for word. 

98. Power to submit cases.— A competent authority may, if he thinks fit, submit any question of law 
for the decision of the High Court and, if he does so, shall decide the question in conformity with such 
decision. 

99. Appeal against order of competent authority.— (1) An appeal shall lie to the High Court from 

the following orders of a competent authority under this Chapter, namely:— 

62 

 
(a) an order awarding as compensation a lump sum whether by way of redemption of a half-monthly 

payment or otherwise or disallowing a claim in full or in part for a lump sum; 

(b) an order awarding interest or damages under section 77; 

(c) an order refusing to allow redemption of a half-monthly payment; 

(d)  an  order  providing  for  the  distribution  of  compensation  among  the  dependants  of  a  deceased 

employee, or disallowing any claim of a person alleging himself to be such dependant; 

(e) an order allowing or disallowing any claim for the amount of an indemnity under the provisions 

of sub-section (2) of section 85; or 

(f) an order refusing to register a memorandum of agreement or registering the same or providing for 

the registration of the same subject to conditions: 

Provided that no appeal shall lie against any order unless a substantial question of law is involved in 
the appeal, and in the case of an order other than an order referred to in clause (c), unless the amount in 
dispute in the appeal is not less than ten thousand rupees or such higher amount as the Central Government 
may, by notification, specify: 

Provided further that no appeal shall lie in any case in which the parties have agreed to abide by the 
decision of the competent authority, or in which the order of the competent authority gives effect to an 
agreement arrived at by the parties: 

Provided also that no appeal by an employer under clause (a) shall lie unless the memorandum of appeal 
is accompanied by a certificate by the competent authority to the effect that the appellant has deposited with 
him the amount payable under the order appealed against. 

(2) The period of limitation for an appeal under this section shall be sixty days from the date of passing 

of the order. 

(3) The provisions of section 5 of the Limitation Act, 1963 (36 of 1963), shall be applicable to appeal 

under this section. 

CHAPTER VIII 

SOCIAL SECURITY AND CESS IN RESPECT OF BUILDING AND 

OTHER CONSTRUCTION WORKERS 

100.  Levy and collection of cess.— (1) There shall be levied and collected a cess for the purposes of 
social security and welfare of building workers at such rate not exceeding two per cent. but not less than 
one  per  cent.  of  the  cost  of  construction  incurred  by  an  employer,  as  the  Central  Government  may,  by 
notification, from time to time, specify. 

Explanation.—For the purposes of this sub-section, the cost of construction shall not include,— 

(a) the cost of land; and 

(b) any compensation paid or payable to an employee or his kin under Chapter VII. 

(2) The cess levied under sub-section (1) shall be collected from every employer undertaking building 
or other construction work in such manner and at such time, including deduction at source in relation to a 
building or other construction work of a Government or of a public sector undertaking or advance collection 
through  a  local  authority  where  an  approval  of  such  building  or  other  construction  work  by  such  local 
authority or such other authority notified by the State Government is required, as may be prescribed by the 
Central Government. 

(3) The proceeds of the cess collected under sub-section (2) shall be deposited by the local authority or 
such other  authority  notified  by  the  State  Government to the  Building  Workers'  Welfare  Board  in  such 
manner as may be prescribed by the Central Government. 

(4) Notwithstanding anything contained in sub-section (1) or sub-section (2), the cess leviable under 
this Chapter including payment of such cess in advance may, subject to final assessment to be made, be 

63 

 
collected at a uniform rate or rates as may be prescribed by the Central Government on the basis of the 
quantum of the building or other construction work involved. 

101.Interest payable on delay in payment of cess.— If any employer fails to pay any amount of cess 
payable under section 100 within such time as may be prescribed by the appropriate Government, such 
employer shall be liable to pay interest at such rate as may be prescribed by the Central Government, on 
the amount of cess, to be paid, for the period from the date on which such payment is due till such amount 
is actually paid. 

102.Power  to  exempt  from  cess.—  Notwithstanding  anything  contained  in  this  Chapter,  the 
appropriate Government may, by notification, exempt any employer or class of employers in a State from 
the payment of cess payable under this Chapter where such cess is already levied and payable under any 
corresponding law in force in that State. 

103. Self-assessment of cess.— (1) The employer shall, within sixty days or such period as may be 
notified by the Central Government of the completion of his each building and other construction work, 
pay such cess (adjusting the advance cess already paid under section 100) payable under this Chapter on 
the basis of his self-assessment on the cost of construction worked out on the basis of the documents and 
in the manner prescribed by the Central Government and after such payment of cess, he shall file a return 
under clause (d) of section 123. 

(2) If the officer or the authority to whom or to which the return has been filed under sub-section (1) 
finds any discrepancy in the payment under the self-assessment and the payment required under the return 
referred to in that sub-section, then, he or it shall, after making or causing to be made such inquiry as he or 
it thinks fit and after such inquiry make the appropriate assessment order. 

(3) An order of assessment made under sub-section (2) shall specify the date within which the cess shall 

be paid by the employer, if any. 

104. Penalty for non-payment of cess within the specified time.— If any amount of cess payable by 
any employer under section 103 is not paid within the date specified in the order of assessment made under 
sub-section (2) of that section, it shall be deemed to be in arrears and the authority prescribed by the Central 
Government  in  this  behalf  may,  after  making  such  inquiry  as  it  deems  fit,  impose  on  such  employer  a 
penalty not exceeding the amount of cess: 

Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity 
of being heard and if after such hearing the said authority is satisfied that the default was for any good and 
sufficient reason, no penalty shall be imposed under this section. 

105. Appeal to appellate authority.— (1) Any employer aggrieved by an order of assessment made 
under section 103 or by an order imposing penalty made under section 104 may, within such time as may 
be  prescribed  by  the  Central  Government,  appeal  to  such  appellate  authority  in  such  form  and  in  such 
manner as may be prescribed by the Central Government. 

(2)  Every  appeal  preferred  under  sub-section  (1)  shall  be  accompanied  by  such  fees  as  may  be 

prescribed by the appropriate Government. 

(3) After the receipt of any appeal under sub-section (1), the appellate authority shall, after giving the 

appellant an opportunity of being heard in the matter, dispose of the appeal as expeditiously as possible. 

(4) Every order passed in appeal under this section shall be final and shall not be called in question in 

any court of law. 

106.Registration of building workers as beneficiaries.— Every building worker who has completed 
eighteen years of age, but has not completed sixty years of age, and who has been engaged in any building 
or  other  construction  work  for  not  less  than  ninety  days  during  the  preceding  twelve  months  shall  be 
registered by the officer authorised by the Building Workers' Welfare Board as a beneficiary under this 
Chapter in such manner as may be prescribed by the Central Government. 

107.Cessation as a beneficiary.— (1) A building worker who has been registered as a beneficiary 
under section 106 shall cease to be as such when he attains the age of sixty years or when he is not engaged 
in building or other construction work for not less than ninety days in a year: 

64 

 
Provided that in computing the period of ninety days under this sub-section, there shall be excluded 
any period of absence from the building or other construction work due to any personal injury caused to the 
building worker by accident arising out of and in the course of his employment. 

(2) Notwithstanding anything contained in sub-section (1), if a person had been a beneficiary for at 
least three years continuously immediately before attaining the age of sixty years, then, he shall be eligible 
to get such benefits as may be prescribed by the Central Government. 

Explanation.—For computing the period of three years under this sub-section as a beneficiary registered 
with a Building Workers' Welfare Board, there shall be added any period for which a person had been a 
beneficiary  registered  with  any  other  such  Board  immediately  before  his  registration  with  the  Building 
Workers' Welfare Board. 

108. Building and Other Construction Workers’ Welfare Fund and its application.—(1) There 
shall  be  constituted  by  a  Building  Workers'  Welfare  Board  a  fund  to  be  called  the  Building  and  Other 
Construction Workers' Welfare Fund and there shall be credited thereto— 

(a) the amount of any cess levied under sub-section (1) of section 100; 

(b) any grants and loans made to the Building Workers' Welfare Board by the Central Government; 

and 

(c) all sums received by the Building Workers' Welfare Board from such other sources as may be 

decided by the Central Government. 

(2) The Building and Other Construction Workers' Welfare Fund shall be applied for meeting— 

(a)  expenses  of  the  Building  Workers'  Welfare  Board  in  the  discharge  of  its  functions  under  

sub-section (6) of section 7; 

(b) salaries, allowances and other remuneration of the members, officers and other employees of the 

Building Workers' Welfare Board; and 

(c) expenses on objects and for purposes authorised by this Code. 

(3) No Building Workers' Welfare Board shall, in any financial year, incur expenses towards salaries, 
allowances and other remuneration to its members, officers and other employees and for meeting the other 
administrative expenses exceeding five per cent. of its total expenses during that financial year. 

CHAPTER IX 

SOCIAL SECURITY FOR UNORGANISED WORKERS, GIG WORKERS AND 

PLATFORM WORKERS 

109. Framing of schemes for unorganized workers.— (1) The Central Government shall frame and 

notify, from time to time, suitable welfare schemes for unorganised workers on matters relating to— 

(i) life and disability cover; 

(ii) health and maternity benefits; 

(iii) old age protection; 

(iv) education; and 

(v) any other benefit as may be determined by the Central Government. 

(2)  The  State  Government  shall  frame  and  notify,  from  time  to  time,  suitable  welfare  schemes  for 

unorganised workers, including schemes relating to— 

(i) provident fund; 

(ii) employment injury benefit; 

(iii) housing; 

(iv) educational schemes for children; 

65 

 
(v) skill upgradation of workers; 

(vi) funeral assistance; and 

(vii) old age homes. 

(3) Any scheme notified by the Central Government under sub-section (1), may be— 

(i) wholly funded by the Central Government; or 

(ii) partly funded by the Central Government and partly funded by the State Government; or 

(iii)  partly  funded  by  the Central  Government,  partly  funded  by  the  State  Government  and  partly 
funded through contributions collected from the beneficiaries of the scheme or the employers as may 
be specified in the scheme by the Central Government; or 

(iv) funded from any source including corporate social responsibility fund within the meaning of the 

Companies Act, 2013 (18 of 2013) or any other such source as may be specified in the scheme. 

(4)  Every  scheme  notified  by  the  Central  Government  under  sub-section  (1)  shall  provide  for  such 
matters that are necessary for the efficient implementation of the scheme including the matters relating to 
all or any of the following, namely:— 

(i) scope of the scheme; 

(ii) authority to implement the scheme; 

(iii) beneficiaries of the scheme; 

(iv) resources of the scheme; 

(v) agency or agencies that will implement the scheme; 

(vi) redressal of grievances; and 

(vii) any other relevant matter, 

and  a  special  purpose  vehicle  may  also  be  constituted  by  the  Central  Government  for  the  purpose  of 
implementation of any such scheme. 

110.  Funding of State Government schemes.— (1) Any scheme notified by the State Government 

under sub-section (2) of section 109 may be— 

(a) wholly funded by the State Government; or 

(b) partly funded by the State Government, partly funded through contributions collected from the 
beneficiaries  of  the  scheme  or  the  employers  as  may  be  specified  in  the  scheme  by  the  State 
Government; or 

(c) funded from any source including corporate social responsibility fund referred to in clause (iv) of 

sub-section (3) of section 109 or any other such source as may be specified in the scheme. 

(2) The State Government may seek financial assistance from the Central Government for the schemes 

framed by it. 

(3) The Central Government may provide such financial assistance to the State Governments for the 

purpose of schemes for such period and on such terms and conditions as it may deem fit. 

111.  Record  keeping.—The  Government  formulating  and  notifying  the scheme  under this  Chapter 
shall provide therein the form and manner of keeping the records electronically or otherwise relating to the 
scheme and the authority by whom such records shall be maintained: 

Provided that such records shall, as far as may be possible, bear continuous number for the purpose of 

proper management of the scheme and for avoiding any duplication and overlapping in records. 

112.  Helpline,  facilitation  centre,  etc.,  for  unorganized  workers,  gig  workers  and  platform 
workers.—The appropriate Government may set up a toll free call centre or helpline or such facilitation 

66 

 
centres as may be considered necessary from time to time to perform any or more of the following functions, 
namely:— 

(a) to disseminate information on available social security schemes for the unorganised workers, gig 

workers and platform workers; 

(b) to facilitate filing, processing and forwarding of application forms for registration of unorganised 

workers, gig workers and platform workers; 

(c) to assist unorganised workers, gig workers and platform workers to obtain registration; and 

(d)  to  facilitate  the  enrolment  of  the  registered  unorganised  workers,  gig  workers  and  platform 

workers in the social security schemes. 

113.  Registration  of  unorganized  workers,  gig  workers  and  platform  workers.—  (1)  Every 
unorganised worker, gig worker or platform worker shall be required to be registered for the purposes of 
this Chapter, subject to the fulfilment of the following conditions, namely:— 

(a)  he  has  completed  sixteen  years  of  age  or  such  age  as  may  be  prescribed  by  the  Central 

Government; 

(b) he has submitted a self-declaration electronically or otherwise in such form and in such manner 

containing such information as may be prescribed by the Central Government. 

(2) Every eligible unorganised worker, gig worker or platform worker referred to in sub-section (1) 
shall  make  an  application  for  registration  in  such  form  along  with  such  documents  including  Aadhaar 
number  as  may  be  prescribed  by  the  Central  Government  and  such  worker  shall  be  assigned  a 
distinguishable number to his application: 

Provided that the system of electronic registration maintained by the appropriate Government shall also 
provide  for  self  registration  by  any  such  worker  in  such  manner  as  may  be  prescribed  by  the  Central 
Government. 

(3) A registered unorganised worker, gig worker or platform worker shall be eligible to avail the benefit 

of the concerned scheme framed under this Chapter. 

(4) The Central Government, or as the case may be, the State Government shall make such contribution 

in a scheme as may be specified therein. 

Explanation.—For the purposes of this section, the term “Aadhaar” shall have the same meaning as is 

assigned to it in section 142. 

114. Schemes for gig works and platform workers.— (1) The Central Government may frame and 
notify, from time to time, suitable social security schemes for gig workers and platform workers on matters 
relating to— 

(a) life and disability cover; 

(b) accident insurance; 

(c) health and maternity benefits; 

(d) old age protection; 

(e) crèche; and 

(f) any other benefit as may be determined by the Central Government. 

(2) Every scheme framed and notified under sub-section (1) may provide for— 

(a) the manner of administration of the scheme; 

(b) the agency or agencies for implementing the scheme; 

(c) the role of aggregators in the scheme; 

(d) the sources of funding of the scheme; and 

67 

 
(e)  any  other  matter  as  the  Central  Government  may  consider  necessary  for  the  efficient 

administration of the scheme. 

(3) Any scheme notified by the Central Government under sub-section (1), may be— 

(a) wholly funded by the Central Government; or 

(b) partly funded by the Central Government and partly funded by the State Government; or 

(c) wholly funded by the contributions of the aggregators; or 

(d)  partly  funded  by  the  Central  Government,  partly  funded  by  the  State  Government  and  partly 
funded through contributions collected from the beneficiaries of the scheme or the aggregators, as may 
be specified in the scheme framed by the Central Government; or 

(e) funded from corporate social responsibility fund within the meaning of Companies Act, 2013 (18 

of 2013); or 

(f) any other source. 

(4)  The  contribution  to  be  paid  by  the  aggregators  for  the  funding  referred  to  in  clause  (ii)  of  
sub-section (1) of section 141, shall be at such rate not exceeding two per cent., but not less than one per 
cent., as may be notified by the Central Government, of the annual turnover of every such aggregator who 
falls within a category of aggregators, as are specified in the Seventh Schedule: 

Provided that the contribution by an aggregator shall not exceed five per cent. of the amount paid or 

payable by an aggregator to gig workers and platform workers. 

Explanation.—For  the  purposes  of  this  sub-section,  the  annual  turnover  of  an  aggregator  shall  not 

include any tax, levy and cess paid or payable to the Central Government. 

(5) The date of commencement of contribution from aggregator under this section shall be notified by 

the Central Government. 

(6) The National Social Security Board constituted under sub-section (1) of section 6 shall be the Board 

for the purposes of the welfare of gig workers and platform workers under the provisions of this Code: 

Provided that while such Board serves the purposes of welfare of, or matters relating to, gig workers 
and platform workers, the following members shall constitute the Board instead of the members specified 
in clauses (c) and (d) of sub-section (2) of section 6, namely:— 

(a) five representatives of the aggregators as the Central Government may nominate; 

(b) five representatives  of the  gig  workers and platform  workers  as the  Central Government  may 

nominate; 

(c) Director General of the Corporation; 

(d) Central Provident Fund Commissioner of the Central Board; 

(e) such expert members as the Central Government may consider appropriate; 

(f) five representatives of the State Governments by such rotation as the Central Government may 

consider appropriate; 

(g) Joint Secretary to the Government of India in the Ministry of Labour and Employment, who shall 

be the Member Secretary to the Board. 

(7) (i) The Central Government may provide that— 

(a) the authority to collect and to expend the proceeds of contribution collected; 

(b) the rate of interest to be paid by an aggregator in case of delayed payment, less payment or non-

payment of contribution; 

(c) self-assessment of contribution by aggregators; 

(d) conditions for cessation of a gig worker or a platform worker; and 

68 

 
(e) any other matter relating to smooth functioning of the social security scheme notified under this 

section, shall be such as may be prescribed by that Government. 

(ii) The Central Government may by notification, exempt such aggregator or class of aggregators from 
paying  of  contribution  under  sub-section  (4),  subject  to  such  conditions  as  may  be  specified  in  the 
notification. 

Explanation.—For the purposes of this section, an aggregator having more than one business shall be 

treated as a separate business entity or aggregator. 

CHAPTER X 

FINANCE AND ACCOUNTS 

115.  Accounts.—Each  of  the  Social  Security  Organisations  shall  maintain  proper  accounts  of  its 
income  and  expenditure  in  such  form  and  in  such  manner  as  the  appropriate  Government  may,  after 
consultation with the Comptroller and Auditor-General of India, specify. 

116. Audit.—(1) The accounts of each of the Social Security Organisations shall be audited annually 
by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with 
such audit shall be payable by the respective Social Security Organisation to the Comptroller and Auditor-
General of India. 

(2) The Comptroller and Auditor-General of India and any person appointed by him in connection with 
the audit of the accounts of a Social Security Organisation shall have the same rights and privileges and 
authority in connection with such audit as the Comptroller and Auditor-General of India has, in connection 
with the audit of Government accounts and, in particular, shall have the right to demand the production of 
books, accounts, connected vouchers, documents and papers and to inspect any of the offices of the Social 
Security Organisation. 

(3) The accounts of a Social Security Organisation as certified by the Comptroller and Auditor-General 
of India or any other person appointed by him in this behalf together with the audit report thereon shall be 
forwarded to the Social Security Organisation which shall along with its comments on the audit report of 
the Comptroller and Auditor-General of India forward the same to the appropriate Government. 

117. Budget estimates.— (1)  Each  of the  Social  Security  Organisations  shall in  each  year frame  a 
budget showing the probable receipts and the expenditure which it proposes to incur during the following 
year and shall submit a copy of the budget for the approval of the appropriate Government before such date 
as may be fixed by it in that behalf. 

(2) The budget shall contain provisions adequate in the opinion of the appropriate Government for the 
discharge  of  the  liabilities  incurred  by  the  Social  Security  Organisation  and  for  the  maintenance  of  a 
working balance. 

118. Annual report.— (1) Each of the Social Security Organisations shall submit to the appropriate 
Government an annual report of its work and activities and the budget finally adopted by the Social Security 
Organisation. 

(2)  The  appropriate  Government  shall  cause  a  copy  of  the  annual  report,  budget  and  the  audited 
accounts together with the report of the Comptroller and Auditor-General of  India and the comments of 
the respective Social Security Organisation thereon to be laid before each House of Parliament or the State 
legislature, as the case may be. 

119.  Valuation  of  assets  and  liabilities.—  Each  of  the  fund  maintained  by  a  Social  Security 
Organisation or by an establishment under this Code shall have a valuation of its assets and liabilities made 
by a valuer or actuary, as the case may be, appointed, with the prior approval of the appropriate Government, 
by such Social Security Organisation or the establishment, as the case may be, in the following manner, 
namely:— 

(a) in case of Central Board, annually; 

(b) in case of Corporation, once in every three years; 

69 

 
(c) in case of any other Social Security Organisation or establishment, as specified by the appropriate 

Government, by order: 

Provided that the appropriate Government, if it considers necessary, may direct such valuation to be 

made at such intervals other than provided in this section. 

120. Holding of property, etc, by Social Security Organisation.—(1) A Social Security Organisation 
(except Corporation) may, subject to such conditions as may by Social Security Organisation be prescribed 
by the appropriate Government, acquire and hold property, both movable and immovable, sell or otherwise 
transfer any movable or immovable property which may have become vested in or have been acquired by 
it and do all things necessary for such purposes and for the purposes for which the said Social Security 
Organisation is established. 

(2) Subject to such conditions as may be prescribed by the appropriate Government, a Social Security 
Organisation may, from time to time invest any moneys vested in it, which are not immediately required 
for expenses properly defrayable and may, subject to as aforesaid, from time to time re-invest or realise 
such investments: 

Provided  that  in  case  of  Provident  Fund,  Pension  Fund  or  Insurance  Fund,  such  investment,  re-
investment or realisation shall be specified in the Provident Fund Scheme or Pension Scheme or Insurance 
Scheme, as the case may be. 

(3) Each of the Social Security Organisations (except Corporation) may, with the previous sanction of 
the appropriate Government and on such terms as may be prescribed by such Government, raise loans and 
take measures for discharging such loans. 

(4) Each of the Social Security Organisations (except Corporation) may, with the previous sanction of 
the appropriate Government and on such terms as may be prescribed by such Government, constitute for 
the benefit of its officers and staff or any class of them, such provident or other benefit funds as it may think 
fit: 

Provided that in case of officers and staff of the Central Board, such terms shall be specified in the 

Provident Fund Scheme. 

121.  Writing  off  of  losses.—Subject  to  the  conditions  as  may  be  prescribed  by  the  appropriate 
Government,  where  any  of  the  Social  Security  Organisations  is  of  the  opinion  that  the  amount  of 
contribution, cess, interest and damages due to it, under this Code, is irrecoverable, the concerned Social 
Security Organisation may sanction the writing off of the said amount in such manner as may be prescribed 
by the appropriate Government: 

Provided that in the case of Provident Fund, Pension Fund or Insurance Fund, such writing off shall be 

specified in the Provident Fund Scheme or Pension Scheme or Insurance Scheme, as the case may be. 

CHAPTER XI 

AUTHORITIES, ASSESSMENT, COMPLIANCE AND RECOVERY 

122. Appointment of Inspector-cum- Facilitators and their powers.—(1) The Central Government 
for the purposes of Chapter III and Chapter IV and for the provisions in this Code relating to those Chapters, 
and the appropriate Government for the purposes of other provisions of this Code, may, by notification, 
appoint Inspectorcum-Facilitators who shall discharge his duties under this Code and exercise the powers 
conferred on them under sub-section (6) in accordance with the inspection scheme referred to in sub-section 
(2). 

(2) The Central Government for the purposes of Chapter III and Chapter IV and for the provisions in 
this Code relating to those Chapters and the appropriate Government in respect of other provisions of this 
Code, may, by notification, lay down an inspection scheme which may provide for generation of a web-
based inspection and calling of information relating to the inspection under this Code electronically and 
such scheme shall, inter alia, have provisions to cater to special circumstances for assigning inspections 
and calling for information from the establishment or any other person. 

70 

 
(3) Without prejudice to the provisions of sub-section (2), the Central Government for the purposes of 
Chapter  III  and  Chapter  IV  and  the  other  provisions  in  this  Code  relating  to  those  Chapters  and  the 
appropriate  Government  in  relation  to  other  provisions  of  this  Code,  may,  by  notification,  confer  such 
jurisdiction  of  randomised  selection  of  inspection  for  the  purposes  of  this  Code,  to  the  Inspector-cum-
Facilitators as may be specified in such notification. 

(4) Without prejudice to the powers of the Central Government or the appropriate Government, as the 
case may be, under this section, the inspection scheme may be designed taking into account, inter alia, the 
following factors, namely:— 

(a)  assignment  of  unique  number  to  each  establishment  (which  will  be  same  as  the  registration 
number  allotted  to  that  establishment),  each  Inspector-cum-Facilitator  and  each  inspection  in  such 
manner as may be notified for the purposes of Chapter III and Chapter IV and the other provisions of 
this Code relating to those Chapters, by the Central Government, and in respect of other provisions of 
this Code, by the appropriate Government; 

(b) timely uploading of inspection reports in such manner and subject to such conditions as may be 
notified, for the purposes of Chapter III and Chapter IV and the other provisions of this Code relating 
to those Chapters, by the Central Government, and in respect of other provisions of this Code, by the 
appropriate Government; 

(c) provisions for special inspections based on such parameters as may be notified, for the purposes 
of Chapter III and Chapter IV and the other provisions of this Code relating to those Chapters, by the 
Central Government, and in respect of other provisions of this Code, by the appropriate Government; 
and 

(d)  the  characteristics  of  employment  relationships,  the  nature  of  work  and  characteristics  of  the 
workplaces based on such parameters as may be notified, for the purposes of Chapter III and Chapter 
IV and the other provisions of this Code relating to those Chapters, by the Central Government, and in 
respect of other provisions of this Code, by the appropriate Government. 

(5) The Inspector-cum-Facilitator may— 

(a) advice the employers and employees relating to compliance with the provisions of this Code; and 

(b) inspect the establishments as assigned to him under the provisions of this Code,  

subject to the instructions or guidelines issued by the appropriate Government from time to time. 

(6) Subject to the provisions of sub-section (4), the Inspector-cum-Facilitator may,— 

(a) examine any person who is found in any premises of the establishment, whom the Inspector-cum-

Facilitator has reasonable cause to believe, is an employee of the establishment; 

(b) require any  person  whom  the  Inspector-cum-Facilitator  has  reasonable  cause  to  believe,  is  an 
employer of the establishment, to produce any document or to give any information, which is in his 
power with respect to any of the purposes for which the inspection is made; 

(c) search, seize or take copies of such register, record of wages or notices or portions thereof as the 
Inspector-cum-Facilitator may consider relevant in respect of an offence under this Code and which the 
Inspector-cum-Facilitator has reason to believe has been committed by the employer; 

(d) bring to the notice of the appropriate Government defects or abuses not covered by any law for 

the time being in force; and 

(e) exercise such other powers as may be prescribed by the appropriate Government. 

(7) Any person required to produce any document or to give any information required by an Inspector-
cum-Facilitator for the purposes of sub-section (6) shall be deemed to be legally bound to do so within the 
meaning of section 175 and section 176 of the Indian Penal Code (45 of 1860). 

(8) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall, so far as may be, apply 
to the search or seizure for the purposes of sub-section (6), as they apply to the search or seizure made under 
the authority of a warrant issued under section 94 of the said Code. 

71 

 
123. Maintenance of records, registers, returns, etc. .— An employer of an establishment shall— 

(a)  maintain  records  and  registers  in  the  form  prescribed  by  the  appropriate  Government, 
electronically or otherwise, containing such particulars and details with regard to persons employed, 
muster roll, wages and such other particulars and details, in such manner, as may be prescribed by the 
appropriate Government including— 

(i) number of days for which work performed by employees; 

(ii) number of hours of work performed by the employees; 

(iii) wage paid; 

(iv) leave, leave wages, wages for overtime work and attendance; 

(v) employees identification number, by whatever nomenclature it may be called; 

(vi) number of dangerous occurrences, accidents, injuries in respect of which compensation has 
been paid by the employer and the amount of such compensation relating to Chapter IV and Chapter 
VII, respectively; 

(vii) statutory deductions made by employer from the wages of an employee in respect of Chapter 

III and Chapter IV; 

(viii) details as to cess paid in respect of building and other construction work; 

(ix)  total  number  of  employees  (regular,  contractual  or  fixed  term  employment)  on  the  day 

specified; 

(x) persons recruited during a particular period; 

(xi) occupational details of the employees; and 

(xii) vacancies for which suitable candidates were not available during the specified period. 

(b) display notices at the workplaces of the employees in such manner and form as may be prescribed 

by the appropriate Government; 

(c) issue wage slips to the employees, in electronic forms or otherwise; and 

(d) file such return electronically or otherwise to such officer or authority in such manner and during 

such periods as may be prescribed by the appropriate Government: 

Provided that matters to be provided under the rules required to be made under this section relating to 
Chapter III shall, instead of providing them in rules to be made by the Central Government, be provided in 
the Provident Fund Scheme or the Pension Scheme or the Insurance Scheme, as the case may be: 

Provided further that the forms of records and registers and that of the returns to be filed under Chapter 

IV shall be specified in the regulations instead of providing them in the rules. 

124. Employer not to reduce wages, etc.— No employer in relation to an establishment to which this 
Code or any scheme framed thereunder applies shall, by reason only of his liability for the payment of any 
contribution under this Code, or any charges thereunder reduce whether directly or indirectly, the wages of 
any employee to whom the provisions of this Code or any scheme framed thereunder applies or the total 
quantum of benefits to which such employee is entitled under the terms of his employment, express or 
implied. 

125.  Assessment and determination of dues from employer.—(1) The Central Government may, by 
notification, authorise, such officers of the Central Board or the Corporation, as the case may be, not below 
the rank of Group 'A' officer of that Government, to function as the Authorised Officers for the purposes of 
Chapter III or Chapter IV, as the case may be, who may, by order— 

(a) in a case where a dispute arises regarding the applicability of Chapter III or Chapter IV, as the 

case may be, to an establishment, decide such dispute; and 

72 

 
(b) determine the amount due from any employer under any provision of Chapter III or Chapter IV, 

as the case may be, or the schemes, or rules, regulations made under such Chapter; and 

(c) for any of the purposes relating to clause (a) and clause (b), conduct such inquiry, as he may deem 

necessary for such purposes: 

Provided that no proceeding under this sub-section shall be initiated after the expiry of the period of 
five years from the date on which the dispute referred to in clause (a) is alleged to have been arisen or, as 
the case may be, the amount referred to in clause (b) is alleged to have been due from an employer. 

(2) Notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), the inquiry 
under sub-section (1), as far as practicable, shall be held on day-to-day basis and endeavour shall be made 
to ensure that the inquiry is concluded within a period of two years: 

Provided that where the inquiry is not concluded within the said period of two years, the Authorised 
Officer conducting such inquiry shall record the circumstances and reasons for not having concluded so 
and submit the circumstances and reasons so recorded to the Central Provident Fund Commissioner or the 
Director General of the Corporation, as the case may be, or such other officer authorised by him in this 
behalf: 

Provided  further  that  the  Central  Provident  Fund  Commissioner  or  the  Director  General  of  the 
Corporation,  as  the  case  may  be,  after  considering  the  circumstances  and  the  reasons  which  have  been 
submitted by the Authorised Officer may grant an extension for a period up to one year to conclude the said 
inquiry: 

Provided also that the inquiries which are pending immediately before the date of commencement of 
this Code shall be concluded by the Authorised Officer within a period not exceeding two years from the 
date of such commencement. 

(3) The Authorised Officer conducting the inquiry under sub-section (1) shall, for the purposes of such 
inquiry have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), 
for trying a suit in respect of the following matters, namely:— 

(a) enforcing the attendance of any person or examining him on oath; 

(b) requiring the discovery and production of documents; 

(c) receiving evidence on affidavit; and 

(d) issuing commissions for the examination of witnesses,  

and any such inquiry shall be deemed to be a judicial proceeding within the meaning of sections 193 and 
228, and for the purpose of section 196 of the Indian Penal Code (45 of 1860). 

(4) No order shall be made under sub-section (1), unless the employer concerned is given a reasonable 

opportunity of representing his case. 

(5)  Where  the  employer,  employee  or  any  other  person  required  to  attend  the  inquiry  under  
sub-section  (1)  fails  to  attend  such  inquiry  without  assigning  any  valid  reason  or  fails  to  produce  any 
document or to file any report or return when called upon to do so by the Authorised Officer conducting 
the inquiry, such inquiry officer may decide the applicability of the relevant provisions of this Code or 
determine the amount due from any employer, as the case may be, on the basis of the evidence adduced 
during such inquiry and other documents available on record. 

(6) Where an order under sub-section (1) is passed against an employer ex parte, he may, within three 
months from the date of communication of such order, apply to the Authorised Officer for setting aside 
such order and if the Authorised Officer is satisfied that the show cause notice was not duly served or that 
such  employer  was  prevented  by  any  sufficient  cause  from  appearing  when  the  inquiry  was  held,  the 
Authorised Officer shall make an order setting aside his earlier order and shall appoint a date for proceeding 
with the inquiry: 

73 

 
Provided that no such order shall be set aside merely on the ground that there has been an irregularity 
in the service of the show cause notice if the Authorised Officer is satisfied that the employer had notice of 
the date of hearing and had sufficient time to appear before the Authorised Officer. 

Explanation.—Where an appeal has been preferred under this Code against an order passed ex parte 
and such appeal has been disposed of otherwise than on the ground that the appellant has withdrawn the 
appeal, no application shall lie under this sub-section for setting aside the ex parte order. 

(7) No order passed under this section shall be set aside on any application under sub-section (6) unless 

notice thereof has been served on the opposite party. 

126. Appeal against order of Authorised Officer relating to Chapter IV. .—If an employer is not 
satisfied with the order referred to in section 125 and relates to Chapter IV, he may prefer an appeal to the 
appellate  authority  not  below  the  rank  of  the  Joint  Director  of  the  Corporation  as  may  be  provided  by 
regulations,  within  sixty  days  from  the  date  of  such  order  after  depositing  twenty-five  per  cent.  of  the 
contribution  so  ordered  or  the  contribution  as  per  his  own  calculation,  whichever  is  higher,  with  the 
Corporation: 

Provided that the appellate authority shall decide the appeal within a period of six months from the date 

of preferring the appeal: 

Provided further that if the employer finally succeeds in the appeal, the Corporation shall refund such 

deposit to the employer together with such interest as may be specified in the regulations. 

127. Interest on amount due.— Except where expressly provided otherwise in this Code, the employer 
shall  be  liable  to  pay  simple  interest  at  such  rate  as  may  be  notified  from  time  to  time  by  the  Central 
Government, from the date on which any amount has become due under this Code till the date of its actual 
payment. 

128.    Power  to  recover  damages.—Where  an  employer  makes  default  in  the  payment  of  any 
contribution which he is liable to pay in accordance with the provisions of Chapter III or Chapter IV, as the 
case may be, or any scheme framed thereunder or in the transfer of accumulations under Chapter III, or in 
the payment of any charges payable under any other provision of this Code, the Central Provident Fund 
Commissioner or the Director General of the Corporation, as the case may be, or such other officer as may 
be authorised, by notification, by the appropriate Government, may levy on, and recover from, the employer 
by way of damages, an amount not exceeding the amount of arrears, in such manner as may be specified in 
the regulations for the purposes of Chapter IV and in respect of Provident Fund Scheme, Pension Scheme 
and Insurance Scheme, such levy and recovery shall be in the manner as may be specified in the respective 
schemes framed by the Central Government: 

Provided that before levying and recovering such damages, the employer shall be given an opportunity 

of being heard: 

Provided further that the Central Board or the Corporation, as the case may be, may reduce or waive 
the  damages  levied  under  this  section  in  relation  to  an  establishment  for  which  a  resolution  plan  or 
repayment plan recommending such waiver has been approved by the adjudicating authority established 
under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) subject to the terms and conditions as may 
be specified by notification, by the Central Government. 

129. Recovery of amount due.— (1) Any amount due from an employer or any other person in relation 
to an establishment including any contribution or cess payable, charges, interest, damages, or benefit or any 
other  amount  may,  if  the  amount  is  in  arrear,  be  recovered  in  the  manner  specified  in  this  section  and 
sections 130 to 132. 

(2) Where any amount is in arrear under this Code, the Authorised Officer, or the competent authority, 
as  the  case  may  be,  shall  issue  to  the  Recovery  Officer  referred  to  in  sub-section  (4),  a  certificate 
electronically or otherwise, specifying the amount of arrears and the Recovery Officer, on receipt of such 
certificate, shall proceed to recover the amount specified therein from the establishment or, as the case may 
be, the employer by one or more of the modes mentioned below, namely:— 

74 

 
(a) attachment and sale of the movable or immovable property of the establishment or, as the case 

may be, of the employer; 

(b) arrest of the employer and his detention in prison; 

(c) appointing a receiver for the management of the movable or immovable properties of the defaulter: 

Provided that the attachment and sale of any property under this section shall first be effected against 
the properties of the establishment and where such attachment and sale is insufficient for recovering the 
whole of the amount or arrears specified in the certificate, the Recovery Officer may move such proceeding 
against the property of the employer for recovery of the whole or any part of such arrears. 

(3) The Authorised Officer or the competent authority, as the case may be, may issue a certificate under 
sub-section (2), notwithstanding that proceeding for recovery of the arrears by any other mode has been 
taken. 

(4) The Authorised Officer or the competent authority, as the case may be, may forward the certificate 

issued under this section, to the Recovery Officer within whose jurisdiction the employer— 

(a)  carries  on  his  business  or  profession  or  within  whose  jurisdiction  the  principal  place  of  his 

establishment is situate; or 

(b) resides or any movable or immovable property of, the establishment or, the employer is situated. 

(5)  Where  an  establishment  or  the  employer  has  property  within  the  jurisdiction  of  more  than  one 
Recovery Officer and the Recovery Officer to whom a certificate is sent by the Authorised Officer or the 
competent authority, as the case may be— 

(a) is not able to recover the entire amount by the sale of the property, movable or immovable, within 

his jurisdiction, or 

(b) is of the opinion that, for the purpose of expediting or securing the recovery of the whole or any 

part of the amount, it is necessary so to do,  

he may send the certificate or, where only a part of the amount is to be recovered, a copy of the certificate 
certified by him, specifying the amount to be recovered, to the Recovery Officer within whose jurisdiction 
the  establishment  or  the  employer  has  property  or  the  employer  resides,  and  thereupon  that  Recovery 
Officer shall proceed to recover the amount due under this section as if the certificate or the copy thereof 
had been the certificate sent to him by the Authorised Officer or the competent authority, as the case may 
be. 

130.Validity  of  certificate  and  amendment  thereof.—(1)  When  the  Authorised  Officer  or  the 
competent authority, as the case may be, issues a certificate to a Recovery Officer under section 129, it 
shall not be open to the employer to dispute before the Recovery Officer the correctness of the amount, and 
no objection to the certificate on any other ground shall be entertained by the Recovery Officer. 

(2)  Notwithstanding  the  issue  of  a  certificate  to  a  Recovery  Officer,  the  Authorised  Officer  or  the 
competent authority, as the case may be, shall have power to withdraw the certificate or correct any clerical 
or arithmetical mistake in the certificate by sending intimation to the Recovery Officer. 

(3)  The  Authorised  Officer  or  the  competent  authority,  as  the  case  may  be,  shall  intimate  to  the 
Recovery Officer any orders of withdrawing or cancelling a certificate or any correction made by him in 
respect of the said certificate under sub-section (2). 

(4) Notwithstanding that a certificate has been issued to the Recovery Officer for the recovery of any 
amount,  the  Authorised  Officer  or  the  competent  authority,  as  the  case  may  be,  may  grant  time  to  the 
employer for payment of the amount recoverable under the certificate and thereupon the Recovery Officer 
shall stay the proceedings until the expiry of the time so granted. 

(5)  Where  a  certificate  for  the  recovery  of  amount  has  been  issued,  the  Authorised  Officer  or  the 
competent authority, as the case may be, shall keep the Recovery Officer informed of any amount paid or 
time granted for payment, subsequent to the issue of such certificate. 

75 

 
(6) Where the order giving rise to a demand of amount for which a certificate for recovery has been 
issued under section 129 has been modified in appeal or other proceeding under this Code, resulting in 
reduction  of  the  demand  but  the  order  is  the  subject  matter  of  further  proceeding  under  this  Code,  the 
Authorised Officer or the competent authority, as the case may be, shall stay the recovery of such part of 
the amount of the certificate as pertains to the said reduction for the period for which the appeal or other 
proceeding remains pending. 

(7) Where a certificate for the recovery of amount has been issued and subsequently the amount of the 
outstanding demand is reduced as a result of an appeal or other proceeding under this Code, the Authorised 
Officer or the competent authority, as the case may be, shall, when the order being the subject matter of 
such appeal or other proceeding becomes final and conclusive, amend the certificate or withdraw it, as the 
case may be in consonance with such finality or conclusion. 

131. other modes of recovery.— (1) Notwithstanding the issue of a certificate to the Recovery Officer 
under section 129, the Central Provident Fund Commissioner or the Director General of the Corporation, 
as the case may be, or any other officer of such Social Security Organisation so authorised by it in this 
behalf, may, recover the amount by any one or more of the modes provided in this section. 

(2) If any amount is due from any person to any employer who is in arrears, the Central Provident Fund 
Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such 
Social Security Organisation authorised by it in this behalf, may, require such person to deduct from the 
said amount the arrears so due, and such person shall comply with any such requisition and shall pay the 
sum so deducted to the credit of the Central Provident Fund Commissioner or the Director General of the 
Corporation, as the case may be, or any other officer of such Social Security Organisation so authorised by 
it in this behalf: 

Provided that nothing in this sub-section shall apply to any part of the amount exempt from attachment 
in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 (5 of 1908). 

(3) (a) The Central Provident Fund Commissioner or the Director General of the Corporation, as the 
case may be, or any other officer of such Social Security Organisation authorised by it in this behalf may, 
at any time or from time to time, by notice in writing, require any person from whom money is due or may 
become due to the employer or, as the case may be, the establishment or any person who holds or may 
subsequently hold money for or on account of the employer or, as the case may be, the establishment, to 
pay to the Central Provident Fund Commissioner or the Director General of the Corporation, as the case 
may be, or any other officer authorised by it in this behalf either forthwith upon the money becoming due 
or being held at or within the time specified in the notice (not being before the money becomes due or is 
held) so much of the money as is sufficient to pay the amount due from the employer in respect of arrears 
or the whole of the money when it is equal to or less than that amount. 

(b) A notice under this sub-section may be issued to any person who holds or may subsequently hold 
any money for or on account of the employer jointly with any other person and for the purposes of this sub-
section, the shares of the joint holders in such account shall be presumed, until the contrary is proved, to be 
equal. 

(c) A copy of the notice shall be forwarded to the employer at his last address known to the Central 
Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other 
officer of such Social Security Organisation authorised by it in this behalf and in the case of a joint account 
to all the joint holders at their last addresses so known. 

(d) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this 
sub-section shall be bound to comply with such notice, and, in particular, where any such notice is issued 
to a post office, bank or an insurer, it shall not be necessary for any pass book, deposit receipt, policy or 
any other document to be produced for the purpose of any entry, endorsement or the like being made before 
payment is made notwithstanding any rule, practice or requirement to the contrary. 

(e) Any claim respecting any property in relation to which a notice under this sub-section has been 

issued arising after the date of the notice shall be void as against any demand contained in the notice. 

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(f) Where a person to whom a notice under this sub-section is sent objects to it by statement on oath 
that the sum demanded or any part thereof is not due to the employer or that he does not hold any money 
for or on account of the employer, then, nothing contained in this sub-section shall be deemed to require 
such  person  to  pay  any  such  sum  or  part  thereof,  as  the  case  may  be,  but  if  it  is  discovered  that  such 
statement was false in any material particular, such person shall be personally liable to the Central Provident 
Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of 
such Social Security Organisation authorised by it in this behalf, to the extent of his own liability to the 
employer on the date of the notice, or to the extent of the employer's liability for any sum due under this 
Code, whichever is less. 

(g) The Central Provident Fund Commissioner or the Director General of the Corporation, as the case 
may be, or any other officer of such Social Security Organisation authorised by it in this behalf, may, at 
any time or from time to time, amend or revoke any notice issued under this sub-section or extend the time 
for making any payment in pursuance of such notice. 

(h) The Central Provident Fund Commissioner or the Director General of the Corporation, as the case 
may be, or any other officer of such Social Security Organisation authorised by it in this behalf, shall grant 
a receipt for any amount paid in compliance with a notice issued under this sub-section, and the person so 
paying shall be fully discharged from his liability to the employer to the extent of the amount so paid. 

(i)  Any  person  discharging  any  liability  to  the  employer  after  the  receipt  of  a  notice  under  this  
sub-section shall be personally liable to the Central Provident Fund Commissioner or the Director General 
of the Corporation, as the case may be, or any other officer of such Social Security Organisation authorised 
by it in this behalf, to the extent of his own liability to the employer so discharged or to the extent of the 
employer's liability for any sum due under this Code, whichever is less. 

(j) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance 
thereof to the Central Provident Fund Commissioner or the Director General of the Corporation, as the case 
may be, or any other officer of such Social Security Organisation authorised by it in this behalf, he shall be 
deemed to be an employer in default in respect of the amount specified in the notice and further proceeding 
may be moved against him for the realisation of the amount as if it were an arrear due from him, in the 
manner provided in sections 129 to 132 and the notice shall have the same effect as an attachment of amount 
in arrears by the Recovery Officer in exercise of his powers under section 129. 

(4) The Central Provident Fund Commissioner or the Director General of the Corporation, as the case 
may be, or any other officer of such Social Security Organisation authorised by it in this behalf may apply 
to the court in whose custody there is money belonging to the employer for payment to him of the entire 
amount of such money, or if it is more than the amount due, an amount sufficient to discharge the amount 
due. 

(5) The Central Provident Fund Commissioner or the Director General of the Corporation, as the case 
may  be,  or  any  other  officer  of  such  Social  Security  Organisation  authorised  by  it  in  this  behalf,  if  so 
authorised by the Central Government by general or special order, recover any arrears of amount due from 
an  employer  or,  as  the  case  may  be,  from  the  establishment  by  distraint  and  sale  of  his  or its  movable 
property in the manner laid down in the Third Schedule to the Income-tax Act, 1961 (43 of 1961). 

132.  Application of certain provisions of Income-tax Act.—The provisions of the Second Schedule 
and the Third Schedule to the Incometax Act, 1961 and the Income-tax (Certificate Proceedings) Rules, 
1962, as in force from time to time, shall apply with necessary modifications as if the said provisions and 
the rules referred to the amount in arrears of the amount mentioned in section 129 of this Code instead of 
to the income-tax: 

Provided that any reference in the said provisions and the rules to the “assessees” shall be construed as 

a reference to an employer or establishment, as the case may be. 

CHAPTER XII 

OFFENCES AND PENALTIES 

133. Penalty for failure to pay contributions, etc.— If any person,— 

77 

 
(a) being an employer, fails to pay any contribution which he is liable to pay under this Code or rules, 

regulations or schemes made thereunder; or 

(b) deducts or attempts to deduct from the wages of an employee, the whole or any part of employer's 

contribution; or 

(c) in contravention of the provisions of this Code, reduces the wages or any privilege or benefits 

admissible to an employee; or 

(d) in contravention of the provisions of Chapter IV or Chapter VI or rules, regulations or schemes 
made or framed under this Code respectively, relating to such Chapters, dismisses, discharges, reduces 
in rank or otherwise penalises a woman employee; or 

(e) fails or refuses to submit any return, report, statement or any other information required under this 

Code or any rules, regulations or schemes made or framed thereunder; or 

(f)  obstructs  any  Inspector-cum-Facilitator  or  other  officer  or  staff  of  the  Central  Board  or  the 
Corporation  or  other  Social  Security  Organisation  or  a  competent  authority  in  the  discharge  of  his 
duties; or 

(g) fails to pay any amount of gratuity to which an employee is entitled under this Code; or 

(h) fails to pay any amount of compensation to which an employee is entitled under this Code; or 

(i) fails to provide any maternity benefit to which a woman is entitled under this Code; or 

(j) fails to send to a competent authority a statement which he is required to send under Chapter VII; 

or 

(k)  fails  to  produce  on  demand  by  the  Inspector-cum-Facilitator  any  register  or  document  in  his 
custody kept in pursuance of this Code or the rules, regulations or schemes made or framed thereunder; 
or 

(l) fails to pay the cess for building workers which he is liable to pay under this Code; or 

(m) is guilty of any contravention of or non-compliance with any of the requirements of this Code or 
the rules or the regulations or schemes made or framed thereunder in respect of which no special penalty 
is provided in this Chapter; or 

(n) obstructs executive officer in exercising his functions under Chapter XIII; or 

(o) dishonestly makes a false return, report, statement or information to be submitted thereunder; or 

(p) fails or makes default in complying with any condition subject to which exemption under section 

143 was granted; or 

(q) fails to pay any administrative or inspection charges payable under any of the schemes framed 

under Chapter III,  

he shall be punishable,— 

(i) where he commits an offence under clause (a), with imprisonment for a term which may extend 

to three years, but— 

(a) which shall not be less than one year, in case of failure to pay the employee's contribution 
which has been deducted by him from the employee's wages and shall also be liable to fine of one 
lakh rupees; 

(b) which shall not be less than two months but may be extended to six months, in any other case 

and shall also be liable to fine of fifty thousand rupees: 

Provided  that  the  court  may,  for  any  adequate  and  special  reasons  to  be  recorded  in  the  judgment, 

impose a sentence of imprisonment for a lesser term; 

(ii) where he commits an offence under clause (g), with imprisonment for a term which may extend to 

one year or with fine which may extend to fifty thousand rupees, or with both; 

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(iii) where he commits an offence under any of the clauses (d), (f), (i), (k), (l) or (o), with imprisonment 
for a term which may extend to six months or with a fine which may extend to fifty thousand rupees, or 
with both; 

(iv) where he commits an offence under any of the clauses (b), (c), (e), (h), (j), (m), (n), (p) or (q), with 

fine which may extend to fifty thousand rupees. 

134.    Enhanced  punishment  in  certain  cases  after  previous  conviction.—Whoever,  having  been 
convicted by a court of an offence punishable under this Code, commits the same offence shall, for second, 
or every subsequent such offence, be punishable with imprisonment for a term which may extend to two 
years and with fine of two lakh rupees: 

Provided  that  where  such  second  or  subsequent  offence  is  for  failure  by  the  employer  to  pay  any 
contribution, charges, cess, maternity benefit, gratuity or compensation which under this Code he is liable 
to pay, he shall, for such second or subsequent offence, be punishable with imprisonment for a term which 
may extend to three years but which shall not be less than two years and shall also be liable to fine of three 
lakh rupees. 

135. Offences by companies.— (1) Where an offence under this Chapter has been committed by a 
company, every person who, at the time the offence was committed, was directly in charge of, and was 
responsible to, the company for the conduct of the business of the company, as well as the company, shall 
be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment, if he proves that the offence was committed without his knowledge or that he exercised all due 
diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence has been committed by a 
company and it is proved that the offence has been committed with the consent or connivance of, or is 
attributable  to  any  neglect  on  the  part  of,  any  director,  secretary  or  other  officer  of  the  company,  such 
director, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be 
proceeded against and punished accordingly. 

Explanation.—For the purposes of this section,— 

(a) “company” means any body corporate, and includes a firm or other association of individuals; 

and 

(b) “Director”, in relation to a firm, means a partner in the firm. 

136. Cognizance of offences.— (1) No court shall take cognizance of an offence punishable under this 
Code, except on a complaint made by an aggrieved person or such officer as may be notified by the Central 
Government for the purposes of offences relating to Chapter III and Chapter IV and the rules, regulations 
or schemes made or framed under this Code relating to those Chapters, and for the purposes of offences 
relating to other provisions of this Code and the rules, regulations or schemes made or framed thereunder, 
by the officer notified by the appropriate Government. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  no  prosecution  under  this  Code  shall  be 
instituted, except by or with the previous sanction of the authority notified by the Central Government for 
the purposes of offences relating to Chapter III and Chapter IV and the rules, regulations or schemes made 
or framed under this Code relating to those Chapters; and for the purposes of offences relating to other 
provisions of this Code and the rules, regulations or schemes made or framed thereunder, the authority 
notified by the appropriate Government. 

(3) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall 

try any offence punishable under this Chapter. 

(4) Notwithstanding anything contained in sub-section (1), a single complaint may be filed under that 
sub-section  by  more  than  one  aggrieved  persons  if  they  are  aggrieved  by  the  same  or  similar  offence 
committed at a place or different places within the jurisdiction of the court. 

79 

 
137.Prior opportunity before prosecution.—Notwithstanding anything contained in this Chapter, the 
Inspector-cum-Facilitator or any other officer notified for the purposes of offences relating to Chapter III 
and Chapter IV and the rules, regulations or schemes made or framed under this Code relating to those 
Chapters, by the Central Government; and for the purposes of offences relating to other provisions of this 
Code  and  the  rules,  regulations  or  schemes  made  or  framed  under  this  Code  relating  thereto,  by  the 
appropriate  Government,  shall,  before initiation  of  prosecution  proceeding  against  an  employer  for  any 
offence  under  this  Chapter,  give  an  opportunity  to  the  employer  to  comply  with  the  aforesaid  relevant 
provisions by way of a written direction, which shall lay down a time period for such compliance, and, if 
the employer complies with the direction within such period, then, no such proceeding shall be initiated 
against the employer; but no such opportunity shall be accorded to an employer, if the violation of the same 
nature  of  such  provisions  is  repeated  within  a  period  of  three  years  from  the  date  on  which  such  first 
violation  was  committed  and  in  such  case  the  prosecution  shall  be  initiated  in  accordance  with  the 
provisions of this Chapter. 

138. Compounding of offences.— (1) Notwithstanding anything contained in the Code of Criminal 
Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Chapter, being 
an offence— 

(i) punishable with fine only; or 

(ii) punishable with imprisonment for a term which is not more than one year and also with fine, 

may, on an application made, either before or after the institution of any prosecution, be compounded by 
an officer authorised by the Central Government for the purposes of offences relating to Chapter III and 
Chapter IV and the rules, regulations or schemes made or framed under this Code relating to those Chapters, 
by the Central Government; and for the purposes of offences relating to other provisions of this Code and 
the  rules,  regulations  or  schemes  made  or  framed  under  this  Code  relating  thereto,  by  the  appropriate 
Government, in such manner as may be prescribed by the Central Government on payment by the offender 
to the appropriate Government the amount— 

(i) in the case of an offence punishable with fine only, the half of the maximum fine provided for that 

offence; and 

(ii) in the case of an offence punishable with imprisonment for a term which is not more than one 

year and also with fine, the three-fourth of the maximum fine provided for that offence. 

(2) Nothing contained in sub-section (1) shall apply to an offence committed by a person for the second 

time or thereafter within a period of three years from the date— 

(i) of commission of a similar offence which was earlier compounded; or 

(ii) of commission of similar offence for which such person was earlier convicted. 

(3)  Every  officer  referred  to  in  sub-section  (1)  shall  exercise  the  powers  to  compound  an  offence, 
subject to the direction, control and supervision of the Central Government for the purposes of offences 
relating to Chapter III and Chapter IV and the rules, regulations or schemes made or framed under this Code 
relating to those Chapters; and for the purposes of offences relating to other provisions of this Code and the 
rules,  regulations  or  schemes  made  or  framed  under  this  Code  relating  thereto,  by  the  appropriate 
Government. 

(4) Every application for the compounding of an offence shall be made in such form and in such manner 

as may be prescribed by the appropriate Government. 

(5) Where any offence is compounded before the institution of any prosecution, no prosecution shall 
be  instituted  in  relation  to  such  offence,  against  the  offender  in  relation  to  whom  the  offence  is  so 
compounded. 

(6)  Where  the  compounding  of  any  offence  is  made  after  the  institution  of  any  prosecution,  such 
compounding shall be brought to the notice of the court in which the prosecution is pending in writing by 
the officer referred to in sub-section (1), and on such notice of the compounding of the offence being given 
to the court, the person against whom the offence is so compounded shall be discharged. 

80 

 
(7) Any person who fails to comply with the order made by the officer referred to in sub-section (1), 
shall be liable to pay a sum equivalent to twenty per cent. of the maximum fine provided for the offence, in 
addition to such fine. 

CHAPTER XIII 

EMPLOYMENT INFORMATION AND MONITORING 

139.Reporting  of  vacancies  to  career  centres.—(1)  The  appropriate  Government  may,  by 
notification,  require  that  from  such  date  as  may  be  specified  in  the  notification,  the  employer  in  every 
establishment or any class or category of establishments, before filling up any vacancy in any employment 
in that establishment or such class or category of establishments, as the case may be, shall report or cause 
to be reported, that vacancy to such career centre as may be specified in the notification, and the employer 
shall thereupon comply with such requisition. 

(2)  For  the  purposes  of  sub-section  (1),  the  appropriate  Government  may  prescribe  the  following, 

namely:— 

(i) the manner in which the vacancies, referred to in sub-section (1), shall be reported to the career 

centres electronically or otherwise; 

(ii) the form in which such vacancies shall be reported to the career centres; and 

(iii) the manner and form of filing the return by the employer, to the concerned career centre. 

(3) Nothing in sub-sections (1) and (2) shall be deemed to impose any obligation upon any employer 
to recruit any person through the career centre to fill any vacancy merely because such vacancy has been 
reported. 

(4) The executive officer shall have access to any record or document in the possession of any employer 
required  to  furnish  any  information  or  returns  for  the  purposes  of  this  Chapter  and  may  enter,  at  any 
reasonable time, any premises where he believes such record or document to be and inspect or take copies 
of such records or documents or ask any question necessary for obtaining any information required. 

140. Exclusions from application of this Chapter.— (1) The provisions of section 139 shall not apply 

in relation to vacancies,— 

(a) in any employment in agriculture (including horticulture) in any establishment in private sector 

other than employment in plantation; or 

(b) in any employment in domestic service; or 

(c) in any employment connected with the staff of Parliament or any State Legislature; or 

(d) in any employment the total duration of which is less than ninety days; or 

(e) in any class or category of establishments as may be notified by the Central Government; or 

(f) in any establishment (other than Government establishment) with less than twenty or such number 

of employees as may be notified by the Central Government; and 

(g) in any other employment as may be notified by the Central Government. 

(2) Unless the Central Government, by notification direct, the provisions of this Chapter shall not apply 

in relation to— 

(a) vacancies which are proposed to be filled through promotion or by absorption of surplus staff of 
any branch or department of the same establishment or through independent recruitment agencies such 
as  Union  Public  Service  Commission,  Staff  Selection  Commission  or  a  State  Public  Service 
Commission or any other agencies as may be notified by the Central Government; or 

(b) vacancies in an employment which carries a monthly remuneration of less than an amount notified 

by the appropriate Government. 

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CHAPTER XIV 

MISCELLANEOUS 

141.  Social  Security  Fund.—(1)  There  shall  be  established  by  the  Central  Government  a  Social 
Security Fund for social security and welfare of the unorganised workers, gig workers and platform workers 
and the sources of the fund shall comprise of funding received— 

(i) under sub-section (3) of section 109; 

(ii) under sub-section (3) of section 114; 

(iii) from the composition of the offences under this Code relating to Central Government and from 

any other Social Security Fund established under any other central labour law. 

(2) A separate account shall be established and maintained for the funding mentioned under each of the 

clauses (i), (ii) and (iii). 

(3) Social Security Fund referred to in sub-section (1) shall be expended for the purposes for which 

each separate account has been established and maintained under sub-section (2). 

(4) The Social Security Fund shall be established and administered in the manner prescribed by the 

Central Government. 

(5) There shall be established by the State Government a Social Security Fund for the welfare of the 

unorganised workers in which there shall be credited the amount received from— 

(i) the composition of offences under this Code relating to the State Government; and 

(ii)  such  other  sources  as  may  be  prescribed  by  the  State  Government,  and  the  fund  shall  be 
administered  and  expended  for  the  welfare  of  the  unorganised  workers  in  such  manner  as  may  be 
prescribed by the State Government. 

142.  Application of Aadhaar.— (1) An employee or unorganised worker or any other person, as the 

case may be, for— 

(a) registration as member or beneficiary; or 

(b) seeking benefit whether in kind, cash or medical sickness benefit or pension, gratuity or maternity 

benefit or any other benefit or for withdrawal of fund; or 

(c) availing services of career centre; or 

(d) receiving any payment or medical attendance as Insured Person himself or for his dependants, 

under this Code or rules, regulations or schemes made or framed thereunder, shall establish his identity or, 
as the case may be, the identity of his family members or dependants through Aadhaar number and for such 
purpose  the  expression  “Aadhaar”  shall  have  the  meaning  as  defined  in  clause  (a)  of  section  2  of  the 
Aadhaar (The Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 
2016): 

Provided  that any  foreigner  employee  shall  obtain and  submit  Aadhaar  number for  establishing  his 
identity, as soon as possible, on becoming resident within the meaning of clause (v) of section 2 of the 
Aadhaar  (Targeted  Delivery  of  Financial and  Other  Subsidies,  Benefits  and  Services)  Act,  2016 (18  of 
2016). 

(2)  For  the  purposes  of  sub-section  (1),  the  Aadhaar  number  issued  to  an  individual  shall  be  in 
accordance  with  the  provisions  of  section  3  of  the  Aadhaar  (Targeted  Delivery  of  Financial  and  Other 
Subsidies, Benefits and Services) Act, 2016 (18 of 2016). 

143.  Power  to  exempt  establishment.—(1)Notwithstanding  anything  contained  in  this  Code,  the 
appropriate  Government  may,  by  notification,  and  subject  to  the  conditions  which  may  include  the 
eligibility conditions to be fulfilled prior to grant of exemption and the conditions to be complied with after 
exemption,  as  may  be  prescribed  by  the  Central  Government  in  this  behalf,  grant  exemption  to  an 

82 

 
 
establishment  or  class  of establishments  (including  factory  or other establishments  under the  control  of 
Central Government or State Government or local bodies) or employees or class of employees, from any 
or all of the provisions of this Code or the scheme framed thereunder as may be specified in the notification 
and may renew for further period such exemption by like notification: 

Provided that no such exemption,— 

(i)  in  respect  of  Provident  Fund  Scheme,  Pension  Scheme  and  Insurance  Scheme,  without  prior 

consultation with the Central Board; and 

(ii) in respect of Chapter IV, without prior consultation with the Corporation,  

shall be granted or renewed and the Central Board or the Corporation, as the case may be, shall on such 
consultation forward its view to the appropriate Government within such time as may be prescribed by that 
Government. 

(2) The appropriate Government may, in the notification referred to in sub-section (1), specify therein 
conditions as may be prescribed by that Government, which the exempted establishment or the class of 
establishments or an employee or class of employees, as the case may be, shall comply with after such 
exemption: 

Provided that for  the  purpose  of  grant  of exemption in respect  of  Provident  Fund  Scheme,  Pension 
Scheme and Insurance Scheme, the terms and conditions of exemption shall be specified in such respective 
schemes. 

(3) The exemption granted under sub-section (1) to an establishment or class of establishments or an 
employee or class of employees, as the case may be, shall be initially for a period of three years from the 
date of publication of such notification and may be extended by the appropriate Government to the extent 
of such period as may be prescribed by the Central Government: 

Provided that for  the  purpose  of  grant  of exemption in respect  of  Provident  Fund  Scheme,  Pension 
Scheme and Insurance Scheme, exemption may be extended for such period as may be specified in such 
respective schemes. 

(4)  The  exemption  granted  under  sub-section  (1)  shall  only  be  granted  if  the  employees  in  the 
establishment  or  class  of  establishments  or  an  employee  or  the  class  of  employees  so  exempted  are 
otherwise in receipt of benefits substantially similar or superior to the benefits provided in the provisions 
of the Code or the scheme framed thereunder. 

(5) For the purposes of administering the fund, managing the investments, maintaining accounts of the 
contributions, withdrawals, credit of interest in respect of each employee of the fund created, and any other 
matter specified in the scheme for any exempted establishment or class of establishments, or employees or 
class of employees, a board of trustees shall be constituted by the employer which will be a legal entity 
which can sue and can be sued and the conditions for management of the trust shall be prescribed by the 
appropriate Government as part of the conditions for exemption: 

Provided that conditions for administering the fund, managing the investments, maintaining accounts 
of  the  contributions,  withdrawals,  credit  of  interest  in  respect  of  each  employee  of  the  fund  created,  in 
respect  of  exemption  from  Provident  Fund  Scheme,  Pension  Scheme  and  Insurance  Scheme  shall  be 
specified in such respective schemes. 

(6) Where an exemption is granted under this section from operation of any or all the provisions of the 
Code or any of the scheme under Chapter III, to any establishment, class of establishments, employee or 
class of employees, the employer in relation to such establishment shall furnish such returns electronically 
in respect of persons employed, accounts maintained in respect of employees, investments made from the 
fund,  provide  facilities  for  inspection  and  pay  such  inspection  charges  as  the  Central  Government  may 
direct. 

(7)  If  employer  in  relation  to  any  establishment  or  class  of  establishments  or  employee  or  class  of 
employees in respect of whom the exemption has been granted under sub-section (1), fails to comply with 
any of the conditions specified under this section, then, the appropriate Government may on such failure, 
cancel the exemption so granted. 

83 

 
(8) Where any exemption granted under sub-section (1) is cancelled, the entire amount of surplus and 
reserves, if any, and accumulations to the credit of every employee, to whom such exemption applied, in 
the  exempted  fund  of the establishment  in  which  he is  employed,  shall  be  transferred  to  the respective 
statutory fund created under this Code within such time and manner as specified in the conditions for grant 
of exemption: 

Provided that in respect of any cancellation of exemption from the Provident Fund Scheme, Pension 
Scheme and Insurance Scheme, the time limit, form and manner of transfer of accumulations of exempted 
employees from the exempted funds to such respective funds shall be specified in such respective schemes. 

(9) Notwithstanding anything contained in this section, the employer of an establishment exempted 
under sub-section (1), after the resolution of the board of trustees of the establishment to that effect may 
make an application to the appropriate Government for surrender of the exemption granted under that sub-
section from the date specified in the application and the appropriate Government may on receipt of that 
application, allow the employer to remit the contribution in the statutory funds under this Code from the 
date specified  in the application  and process  the  application for cancellation of  exemption  and on  such 
cancellation,  the  employer  and  the  board  of  trustees  shall  transfer  accumulation  of  each  employee  and 
surplus and reserves from the fund referred to in sub-section (5), to the concerned statutory funds under this 
Code within such time and in such manner as may be notified by the appropriate Government: 

Provided that in respect of any surrender of exemption from the Provident Fund Scheme, the Pension 
Scheme and the Insurance Scheme, the time limit, form and manner of transfer of accumulation of exempted 
employees and surplus and reserves from the fund referred to in sub-section (5), to the concerned statutory 
funds under this Code shall be such as may be specified in the concerned schemes framed under Chapter 
III. 

144.Power to defer or reduce.— Notwithstanding anything contained in Chapter III or Chapter IV, 
the Central Government may by order, defer or reduce employer's contribution, or employee's contribution, 
or both, payable under Chapter III or Chapter IV, as the case may be, for a period up to three months at a 
time, in respect of establishment to which Chapter III or Chapter IV, as the case may be, applies, for whole 
of India or part thereof in the event of pandemic, endemic or national disaster. 

145. Liability in case of transfer of establishment.— Where an employer transfers his establishment 
in whole or in part, by sale, gift, lease or licence or in any other manner whatsoever, the employer and the 
person to whom the establishment is so transferred shall jointly and severally be liable to pay the amount 
due in respect of any liabilities, cess or any other amount payable under this Code in respect of the periods 
up to the date of such transfer: 

Provided that the liability of the transferee shall be limited to the value of the assets obtained by him 

by such transfer. 

146.  Members  officers  and  staff  to  be  public  servants.—  Every  member  of  a  Social  Security 
Organisation  and  the  officers  and  staff  thereof,  any  Inspector-cum-Facilitator,  competent  authority, 
Authorised Officer, Recovery Officer and any other person discharging any function under this Code, shall 
be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). 

84 

 
 
 
147. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 

lie against— 

(i) the Central Government; 

(ii) a State Government; 

(iii) a Social Security Organisation; 

(iv) a competent authority; 

(v) any officer or staff of a Social Security Organisation; or 

(vi) any other person or authority, discharging the functions or exercising the powers under this Code, 
for anything which is in good faith done or intended to be done in pursuance of this Code or of any 
rules, regulations or schemes made or framed thereunder. 

148. Misuse of benefits.—If the appropriate Government is satisfied in the manner prescribed by it 
that any establishment or any other person has misused any benefit provided to him under this Code or 
rules,  regulations  or  schemes  made  or  framed  thereunder,  then,  such  Government  may,  by  notification, 
deprive such establishment or other person, as the case may be, from such benefit for such time as may be 
specified in the notification: 

Provided  that  no  such  order  shall  be  passed  unless  an  opportunity  of  being  heard  is  given  to  such 

establishment or other person, as the case may be: 

Provided further that the manner to ascertain misuse of any benefit under this section relating to Chapter 
III, shall be specified in the Provident Fund Scheme or the Pension Scheme or the Insurance Scheme, as 
the case may be. 

149. Power of Central Government to give directions to State Government and Social Security 

Organisations.—The Central Government may give directions to— 

(i) any State Government or a State Board constituted under section 12 to execute in that State, of 

any of the provisions of this Code; or 

(ii) any of the Social Security Organisations in respect of the matters relating to the implementation 

of the provisions of this Code. 

150.  Power  to  frame  schemes.—  The  appropriate  Government  may,  subject  to  the  condition  of 
previous publication, frame schemes not inconsistent with this Code, for the purposes of giving effect to 
the provisions thereof. 

151. Protection against attachment etc.— (1) Notwithstanding anything contained in any other law 
for the time being in force, the amount standing to be credited in favour of the employee under Chapters 
III,  IV,  V,  VI  or  VII  of  any  member  of  any  fund  under  this  Code,  or  of  any  exempted  employee  in  a 
provident fund maintained by his employer, shall not in any way be capable of being assigned or charged 
and shall not be liable to attachment under any decree or order of any Court in respect of any debt or liability 
incurred by such employee or member or the exempted employee, as the case may be. 

(2)  Any  amount  standing  to  the  credit  of  a  member  in  the  fund  or  of  an  exempted  employee  in  a 
provident  fund  maintained  by  his  employer  at  the  time  of  the  death  of  such  member  or  the  exempted 
employee, as the case may be, and payable to his nominee or in case of failure of nomination, to his family 
under the scheme or the rules of the fund shall, subject to any deduction authorised by the said scheme or 
rules, as the case may be, vest in the nominee or such family and shall be free from any debt or other liability 
incurred by the deceased or the nominee before his death and shall also not be liable to attachment under 
any decree or order of any court. 

(3) Notwithstanding anything contained in any other law for the time being in force, any amount due 
under the Chapters referred to in sub-section (1) shall be the charge on the assets of the establishment to 
which  it  relates  and  shall  be  paid  in  priority  in  accordance  with  the  provisions  of  the  Insolvency  and 
Bankruptcy Code, 2016 (31 of 2016). 

85 

 
152. Power to amend Schedule.—(1) If the Central Government is satisfied that it is necessary or 
expedient so to do, it may, by notification amend the First Schedule, Fourth Schedule, Fifth Schedule, Sixth 
Schedule and Seventh Schedule by way of addition or deletion therein and upon such addition or deletion, 
the Schedules shall stand to have been amended accordingly. 

(2)  If  the  appropriate  Government  is  satisfied that  it  is  necessary  or  expedient  so  to  do,  it  may,  by 
notification amend the Second Schedule and Third Schedule by way of addition therein and not otherwise, 
and upon such addition, the Schedules shall stand to have been amended accordingly. 

153.  Transitional  provisions.—  Notwithstanding  anything  contained  in  this  Code,  the  following 

organisations constituted or established under the enactments repealed under section 164, namely:— 

(i)  the  Central  Board  constituted  under  section  5A  of  the  Employees'  Provident  Funds  and 

Miscellaneous Provisions Act, 1952 (19 of 1952); 

(ii)  Executive  Committee  constituted  under  section  5AA  of  the  Employees'  Provident  Funds  and 

Miscellaneous Provisions Act, 1952 (19 of 1952); 

(iii) the Corporation established under section 3 of the Employees' State Insurance Act, 1948 (34 of 

1948); 

(iv) the Medical Benefit Council constituted under section 10 of the Employees' State Insurance Act, 

1948 (34 of 1948); 

(v) the Standing Committee of the Corporation constituted under section 8 of the Employees' State 

Insurance Act, 1948 (34 of 1948); and 

(vi) the Board constituted under sub-section (1) of section 18 of the Building and Other Construction 
Workers  (Regulation  of  Employment  and  Condition  of  Service)  Act,  1996,  shall,  after  the 
commencement  of  this  Code,  continue  to  exercise  the  powers  and  discharge  the  functions  of  the 
corresponding organisations under this Code, respectively, the Central Board of Trustees for Employees 
Provident Fund constituted under section 4, the Executive Committee constituted under sub-section (3) 
of  section  4,  the  Employees  State  Insurance  Corporation,  constituted  under  section  5,  the  Medical 
Benefit Committee constituted under sub-section (5) of section 5, the Standing Committee constituted 
under sub-section (3) of section 5, Building Workers' Welfare Board constituted under sub-section (1) 
of section 7, as if such organisations constituted or, as the case may be, established under such repealed 
enactments, had been constituted under the respective provisions of this Code, till such corresponding 
organisations  are  constituted  under this  Code  or  till their  respective  time  period  under  the  repealed 
enactments expire, whichever is earlier. 

154. Power of appropriate Government to make rules.—(1) The appropriate Government may, by 
notification, and subject to the condition of previous publication, make rules not inconsistent with this Code 
for the purpose of giving effect to the provisions thereof. 

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide 

for all or any of the following matters, namely:— 

(a) the amount in connection with premium for Group Insurance Scheme of the beneficiaries under 
clause (c), the educational schemes for the benefit of children of the beneficiaries under clause (d) and 
the medical expenses for treatment of major ailments of a beneficiary or, such dependant under clause 
(e) of sub-section (6) of section 7; 

(b) manner and time within which second appeal may be filed to the Employees' Insurance Court by 

the Insured Person or the Corporation under clause (b) of sub-section (7) of section 37; 

(c) the manner of commencement of proceedings before the Employees' Insurance Court, fees and 

procedure thereof under sub-section (1) of section 51; 

(d) bank or other financial institution in which the gratuity shall be invested for the benefit of minor 

under the third proviso to sub-section (1) of section 53; 

86 

 
(e) the time, form and manner of nomination by an employee under sub-section (1), the time to make 
fresh nomination under sub-section (4), the form and manner of modification of a nomination under 
sub-section (5) and the form for fresh nomination under sub-section (6) of section 55; 

(f) time within which and the form in which a written application shall be made under sub-section (1) 
and the form of application to the competent authority under clause (b) of sub-section (5) of section 56; 

(g) the  manner  of registration  of  an establishment  by  the employer  under  sub-section (3) and the 
manner of composition of the Board of Trustees of the approved gratuity fund and the manner in which 
the competent authority may recover the amount of the gratuity payable to an employee from the insurer 
under sub-section (4) of section 57; 

(h) the qualifications and experience of the officer appointed as the competent authority under sub-

section (1) of section 58; 

(i) authority to whom an appeal may be preferred under sub-section (3) of section 72; 

(j) class of employers and the form of notice-book under sub-section (4) of section 82; 

(k)  the  manner  of  recording  the  memorandum  in  a  register  by  the  competent  authority  under  

sub-section (1) of section 89; 

(l)  such  other  experience  and  qualifications  for  appointment  as  a  competent  authority  under  

sub-section (1) of section 91; 

(m) time limit to pay the amount of cess under section 101; 

(n) fees for appeal under sub-section (2) of section 105; 

(o) conditions to acquire, hold, sell or otherwise transfer any movable or immovable property under 
sub-section  (1),  conditions  to  invest  moneys,  re-invest  or  realise  investments  under  sub-section  (2) 
terms to raise loans and take measures for discharging such loans under sub-section (3) and terms to 
constitute for the benefit of officers and staff or any class of them, provident or other benefit funds 
under sub-section (4) of section 120; 

(p) conditions and manner of writing off irrecoverable dues under section 121; 

(q) other powers of Inspector-cum-Facilitator under clause (e) of sub-section (6) of section 122; 

(r) form and manner for maintenance of records and registers and other particulars and details under 
clause (a), manner and form for display of notices at the work places of the employees under clause (b) 
and the manner and period of filing returns to the officers or authority under clause (d) of section 123; 

(s) the form and manner of application for compounding of an offence under sub-section (4) of section 

138; 

(t) the manner and form for reporting vacancies and form for filing the return by the employer, to the 

concerned career centre under sub-section (2) of section 139; 

(u) the time within which the Central Board or the Corporation, as the case may be, shall forward its 
view  to  the  appropriate  Government  under  sub-section  (1),  conditions  which  the  exempted 
establishment or the class of establishments or an employee or class of employees, as the case may be, 
shall comply with after such exemption under sub-section (2) and conditions for management of the 
trust under sub-section (5) of section 143; 

(v) manner of determining the misuse of any benefit by an establishment or by any other person under 

section 148; and 

(w) any other matter which is required to be, or may be, prescribed by the appropriate Government 

under the provisions of this Code. 

155.  Power  of  Central  Government  to  make  rules.—(1)  The  Central  Government  may,  by 
notification, and subject to the condition of previous publication, make rules not inconsistent with this Code, 
for the purpose of giving effect to the provisions thereof. 

87 

 
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide 

for all or any of the following matters, namely:— 

(a)  the  manner,  and  the  conditions  subject  to  which,  the  provisions  of  Chapter  III  shall  be  made 
inapplicable to an establishment by the Central Provident Fund Commissioner, under sub-section (5) 
and the manner, and the conditions subject to which the provisions of that Chapter IV shall be made 
inapplicable to an establishment by the Director General of the Corporation under sub-section (7) of 
section 1; 

(b) manner of establishment and maintenance of career centre and the career services under clause 
(9),  the  income  of  dependant  parents  (including  father-in-law  and  mother-in-law  of  a  woman 
employee),  under  sub-clause  (e)  of  clause  (33)  and  other  authority  who  shall  be  deemed  to  be  the 
occupier under sub-clause (c) and the matters which are directly related to the condition of ship, for 
which the owner of ship shall be deemed to be the occupier under the proviso to the said sub-clause (c) 
of clause (52), of section 2; 

(c)  the  time  and  manner  of  registration  of  establishment,  the  manner  of  making  application  for 
cancellation of the registration, the conditions subject to which the registration shall be cancelled and 
the procedure of cancellation and other matters relating thereto in respect of an establishment to which 
Chapter III or Chapter IV applies, and whose business activities are in the process of closure, under 
section 3; 

(d) the manner of administration of the funds vested in the Central Board under sub-section (1), the 
manner to assist the Central Board in performance of its functions by Executive Committee under sub-
section (3), the terms and conditions, including tenure of office of members of the Central Board and 
Executive Committee under sub-section (6) and the other functions and the manner of performing such 
functions under sub-section (7), of section 4; 

(e) the manner of administration of the Corporation and the manner of representation of States under 
clause (d) of sub-section (1), the manner of constitution of Standing Committee under sub-section (3), 
the manner of administration of the affairs of the Corporation, exercise of powers and performance of 
functions  by  the  Standing  Committee  under  clause  (a)  of  sub-section  (4),  the  duties  and  powers  of 
Medical Benefit Committee under clause (b) of sub-section (5) and the terms and conditions, including 
tenure of office, subject to which a member of the Corporation and Standing Committee shall discharge 
their respective duties under sub-section (7) of section 5; 

(f) the  manner  of  exercising  the  powers  and  performance  of the functions  by  the  National  Social 
Security Board under sub-section (1), the manner of nomination of members, their term of office and 
other conditions of service, procedure to be followed in the discharge of their functions and manner of 
filling vacancies under sub-section (4) and time, place and rules of procedure relating to the transaction 
of business under sub-section (6) of section 6; 

(g) other welfare measures and facilities under clause (j) of sub-section (6) of section 7; 

(h) the intervals at which Social Security Organisation or any Committee thereof shall meet and the 
procedure in regard to the transaction of business at meetings under sub-section (1), and the fee and 
allowances of members of such Social Security Organisation or Committee under sub-section (4) of 
section 9; 

(i) manner of reconstitution of the Corporation or the Central Board or the National Social Security 
Board or the State Unorganised Workers' Board or the Building Workers' Welfare Board or any of the 
Committees under sub-section (1) and the alternate arrangements for the purpose of administration of 
the relevant provisions of this Code under sub-section (2) of section 11; 

(j) the manner of maintenance of a provident fund account in relation to the establishment under sub-

section (1) of section 21; 

(k) the form, manner, time limits and fees for filing of appeal under sub-section (2) of section 23; 

88 

 
(l) salary and allowances of the Director General or the Financial Commissioner under sub-section 
(3), their powers and duties under sub-section (4) and maximum monthly salary limit under the proviso 
to sub-section (7) of section 24; 

(m) the manner of investment of Employees' State Insurance Fund or any other money which is held 

by Corporation under sub-section (4) of section 25; 

(n) limits for defraying of expenditure under clause (k) of section 26; 

(o) conditions to acquire, hold, sell or otherwise transfer any movable or immovable property under 
sub-section (1), conditions to invest moneys by the Corporation under sub-section (2) and the terms to 
raise loans and taking measures for discharging such loans under sub-section (3) of section 27; 

(p) manner of insurance of employees under sub-section (1) of section 28; 

(q) the rate of contributions under sub-section (2) of section 29; 

(r) the type of administrative expenses and percentage of income which may be spent on expenses 

and the limits for such expenses under section 30; 

(s) the limit for the amount of payment under the proviso to clause (f) of sub-section (1), and the 
qualifications to claim benefits, conditions, rate and period thereof under sub-section (3) of section 32; 

(t)  the  limits  within  which  the  Corporation  may  incur  expenditure  from  the  Employees'  State 

Insurance Fund under section 33; 

(u) the manner and time within which the Insured person or the Corporation may file appeal under 

clause (a) of sub-section (7) of section 37; 

(v) the rates, periods and conditions for payment of dependants' benefit under sub-section (1) and to 

other dependants under sub-section (2), of section 38; 

(w) the qualification of an Insured Person and his family to claim medical benefit and the conditions 
subject to which such benefit may be given and the scale and period thereof, under sub-section (3) of 
section 39, and the payment of contribution and other conditions under the third proviso thereof; 

(x) the structure, functions, powers and activities of the organisation for providing certain benefits to 
employees in case of sickness, maternity and employment injury, under sub-section (6) of section 40; 

(y)  extended  period  for  insurance,  the  manner  of  satisfaction  and  the  manner  of  calculation  of 

capitalised value of benefit payable to the employee under sub-section (1) of section 42; 

(z) terms and conditions subject to which the scheme may be operated under section 44; 

(za)  the  manner  of  obtaining  an  insurance  by  every  employer,  other  than  an  employer  or  an 
establishment belonging to, or under the control of, the Central Government or a State Government 
under sub-section (1) and conditions to exempt and manner of establishing an approved gratuity fund 
under  sub-section  (2)  and  the  time  limit  to  get  establishment  registered  by  the  employer  under  
sub-section (3), of section 57; 

(zb) the form of notice under sub-section (1) and the proof of pregnancy and proof of delivery under 

sub-section (5) of section 62; 

(zc) the proof of miscarriage or medical termination of pregnancy under sub-section (1), the proof of 
tubectomy operation under sub-section (2) and the proof of illness under sub-section (3) of section 65; 

(zd) the duration of breaks under section 66; 

(ze) the number of employees and distance for crèche facility under sub-section (1) of section 67; 

(zf) gross misconduct under the second proviso to sub-section (1) of section 68; 

(zg) rate of interest to be paid by the employer under clause (a) of sub-section (3) of section 77; 

(zh)  the  manner  of  notice  under  sub-section  (1)  and  the  manner  of  transmitting  money  under  

sub-section (3), of section 92; 

89 

 
(zi) the form, manner and fee for application for claim or settlement under sub-section (3) of section 

93; 

(zj) the manner and time of collection of cess under sub-section (2), manner of deposit of the cess so 
collected under sub-section (3), and the uniform rate or rates of advance cess under sub-section (4) of 
section 100; 

(zk) the rate of interest in case of delayed payment of cess under section 101; 

(zl) the manner of self-assessment of cess under sub-section (1) of section 103; 

(zm) the authority to inquire and impose penalty under section 104; 

(zn) time limit to prefer appeal, appellate authority, form and manner of appeal under sub-section (1) 

of section 105; 

(zo) manner of registration as beneficiary under section 106; 

(zp) benefits of a beneficiary under sub-section (2) of section 107; 

(zq) eligible age for registration under clause (a) and form and manner of information under clause 
(b),  of  sub-section  (1)  and  the  form  of  application,  documents  for  registration  and  manner  of  self 
registration under sub-section (2), of section 113; 

(zr) carrying out the matters specified in clause (i) of sub-section (7) of section 114; 

(zs) manner of compounding of offences under sub-section (1) of section 138; 

(zt) the manner of establishment and administration of the Social Security Fund under sub-section (4) 

of section 141; 

(zu) eligibility conditions to be fulfilled prior to grant of exemption and the conditions to be complied 
with  after  exemption  under  sub-section  (1);  and  extension  period  of  exemption  under  
sub-section (3) of section 143; and 

(zv) any other matter which is required to be, or may be, prescribed by the Central Government under 

the provisions of this Code. 

156. Power of State Government to make rules.— (1) The State Government may, by notification, 
and subject to the condition of previous publication, make rules not inconsistent with this Code, for the 
purpose of giving effect to the provisions thereof. 

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide 

for all or any of the following matters, namely:— 

(a) the manner of exercising the powers and performance of functions by State Unorganised Workers' 
Board under sub-section (9), the manner of nomination of members of the Board, their term of office 
and other conditions of service, the procedure to be followed in the discharge of their functions by, and 
the manner of filling vacancies among the members of, the Board under sub-section (12), and the time, 
place and rules of procedure relating to the transaction of business at its meetings under sub-section 
(14) of section 6; 

(b)  the terms  and  conditions  of  appointment and the salaries  and  other  allowances payable  to  the 
chairperson and the other members of the Building Workers' Welfare Board and the manner of filling 
of casual vacancies of such members, under sub-section (4), the terms and conditions of appointment 
and the salary and allowances payable to the Secretary and the other officers and employees of the said 
Board under clause (c) of sub-section (5) of section 7; 

(c) procedure to be followed by the Employees' Insurance Court under sub-section (2) and the rules 

under sub-section (3) of section 50; 

(d)  the  amount  to  be  deposited  towards  the  expenditure  of  the  funeral  of  the  employee  with  the 

competent authority by the employer under sub-section (7) of section 76; 

90 

 
(e) conditions when application for review is made without certificate of a medical practitioner under 

sub-section (1) of section 79; 

(f) the frequent interval for medical examination under the proviso to sub-section (1) of section 84; 

(g) the form of statement to be submitted by the employer under sub-section (1) of section 88; 

(h)  the  manner  in  which  matters  may  be  dealt  with  by  or  before  a  competent  authority  under  

sub-section (1) of section 92; 

(i) time-limit for disposal of application and costs incidental to the proceedings under sub-section (4) 

of section 93; 

(j) the manner of authentication of memorandum under section 97; 

(k) such other sources of funding and the manner of administering and expending of the fund under 

sub-section (5) of section 141; and 

(l) any other matter which is required to be, or may be, prescribed by the State Government under the 

provisions of this Code. 

157.Power  of  Corporation  to  make regulations.—  (1) The  Corporation  may,  by  notification, and 
subject to the condition of previous publication, make regulations, not inconsistent with this Code and the 
rules and schemes made or framed thereunder, for the administration of the affairs of the Corporation and 
for carrying into effect the provisions of Chapter IV and the provisions of this Code relating to that Chapter. 

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(a) the cases and matters to be submitted for the decision of the Corporation under clause (b) of sub-

section (4) and the composition of committees under sub-section (6) of section 5; 

(b) the areas in respect of which the Corporation may appoint Regional Boards and local committees 
and the  manner in  which  such  Boards  and committees  shall  perform  the functions  and exercise the 
powers under sub-section (2) of section 12; 

(c) such other functions of the Director General and the Financial Commissioner under sub-section 
(4), the method of recruitment, salary and allowances, discipline and other conditions of service of the 
officers  and  employees  under  clause  (a)  of  sub-section  (8)  and  minimum  qualifying  service  for 
promotion to next higher grade under the second proviso to sub-section (9) of section 24; 

(d) the unit in respect of which all contribution shall be payable under sub-section (3), and the days 

on which the contributions shall fall due under sub-section (4) of section 29; 

(e) maintenance of register of employees by or through the contractor under sub-section (7), and any 
matter  relating  or  incidental  to  the  payment  and  collection  of  contribution  under  sub-section  (9)  of 
section 31; 

(f)  qualifications  and  experience  of  other  person  to  certify  sickness  under  clause  (a),  authority  to 
certify eligibility of a woman under clause (b), authority to certify eligibility for payment under clause 
(c) of sub-section (1), the conditions for extension of medical benefits under sub-section (2) and any 
matter relating or incidental to the accrual and payment of benefits under sub-section (4) of section 32; 

(g) continuous period in which the employee contracts occupational disease under sub-section (1) of 

section 36; 

(h) constitution of medical board under sub-section (1) and constitution of medical appeal tribunal 

under sub-section (5) of section 37; 

(i) the period and the nature of medical  benefit which may be allowed to a person under the first 
proviso, conditions for voluntary retirement scheme under the second proviso, payment of contribution 
and  other  conditions  for  eligibility  to  receive  medical  benefits  under  the  second  proviso  and  the 
conditions  for  grant  of  medical  benefits  to  the  Insured  Person  during  employment  injury  under  the 
fourth proviso, to sub-section (3), the time for which students of medical education institutions shall 

91 

 
serve the Corporation and the manner in which the bond shall be furnished under clause (b) of sub-
section  (4)  and  manner  of  carrying  out  occupational  and  epidemiological  surveys  and  studies  for 
assessment of health and working conditions of Insured Persons under sub-section (6) of section 39; 

(j) other authority for providing permission to leave the area in which medical treatment provided 
under  clause  (c)  of  sub-section  (3),  form  of  nomination  under  sub-section  (6)  and  the  authority  to 
determine benefits under sub-section (9) of section 41; 

(k)  user  charges  to  be  paid  by  other  beneficiaries  for  medical  facilities  under  clause  (c)  of  the 

Explanation to section 44; 

(l) time within which the claims, recovery or contribution, from employer by the Corporation and 
recovery of contribution by the employer from the Contractor, shall be made under the second proviso 
to sub-section (1) of section 51; 

(m) the forms of records and registers and of returns to be filed under the second proviso to clause 

(d) of section 123; 

(n) the appellate authority not below the rank of the Joint Director of the Corporation before whom 
appeal  shall  be  preferred  and  the  interest  to  be refunded  to  the  employer  by  the  Corporation  under 
section 126; 

(o) manner of levy and recovery of damages from the employer who makes default in the payment 

of any contribution which he is liable to pay under section 128; 

(p) the circumstances in which and the condition subject to which any regulation may be relaxed, the 

extent of such relaxation, and the authority by whom such relaxation may be granted; and 

(q) any matter in respect of which regulations are required or permitted to be made by this Code. 

158. Prior publication of rules regulations, etc.—The power to make rules, regulations and schemes 
under this Code (except the schemes to be framed under Chapter III), shall be subject to the condition of 
the previous publication of the same being made, in the following manner, namely:— 

(a) the date to be specified after a draft of such rules, regulations and schemes under consideration, 
shall not be less than forty-five days from the date on which the draft of the proposed rules, regulations 
and schemes is published for general information in the Official Gazette; 

(b) such rules, regulations and schemes shall finally be published in the Official Gazette and, on 

such publication, shall have effect as if enacted in this Code: 

Provided that the Central Government may, in the circumstances of epidemic, pandemic or disaster, 

dispense with the condition of previous publication under this section. 

159. Rules to give effect to arrangements with other countries for the transfer of money paid as 
compensation.—  (1)  The  Central  Government  may,  by  notification,  make  rules  for  the  transfer  to  any 
foreign country of money deposited with a competent authority under Chapter VII which has been awarded 
to or may be due to, any person residing or about to reside in such foreign country and for the receipt, 
distribution and administration in any State of any money deposited under the law relating to employees' 
compensation in any foreign country, which has been awarded to, or may be due to any person residing or 
about to reside in any State: 

Provided that no sum deposited under Chapter VII in respect of fatal accidents shall be so transferred 
without the consent of the employer concerned after the competent authority receiving the sum has passed 
orders determining its distribution and apportionment under section 81. 

(2) Where money deposited with a competent authority has been so transferred in accordance with the 
rules made under this section, the provisions elsewhere contained in this Code regarding distribution by the 
competent authority of compensation deposited with him shall cease to apply in respect of any such money. 

160.Laying  of  rules,  regulations  and  schemes,  etc.—(1)  Every  rule,  regulation,  notification  and 
scheme made or framed by the Central Government or the Corporation, as the case may be, under this Code 
shall be laid, as soon as may be after it is made or framed, before each House of Parliament, while it is in 

92 

 
session, for a total period of thirty days which may be comprised in one session or in two or more successive 
sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the  successive 
sessions aforesaid, both Houses agree in making any modification in the rule, regulation, notification or 
scheme, as the case may be, or both Houses agree that the rule, regulation, notification or scheme, as the 
case may be, should not be made, such rule, regulation, notification or scheme shall thereafter have effect 
only in such modified form or be of no effect, as the case may be; so, however, that any such modification 
or  annulment  shall  be  without  prejudice  to  the  validity  of  anything  previously  done  under  that  rule, 
regulation, notification or scheme, as the case may be. 

(2) Every rule and scheme made or framed, and every notification issued by, the State Government 
under this Code, shall be laid as soon as may be after it is made or framed, before the State Legislatures, 
where it consists of two Houses, or where such legislature consists of one House, before that House. 

161. Effect of laws and agreements inconsistent with this Code.—(1) The provisions of this Code 
shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time 
being in force, or in the terms of any award, agreement or contract of service, whether made before or after 
the coming into force of this Code: 

Provided that where under any such award, agreement, contract of service or otherwise, a person is 
entitled to benefits in respect of any matter which are more favourable to him than those to which he would 
be entitled under this Code, the person shall continue to be entitled to the more favourable benefits in respect 
of that matter, notwithstanding that he is entitled to receive benefits in respect of other matters under this 
Code. 

(2)  Nothing  contained  in  this  Code  shall  be  construed  to  preclude  a  person  from  entering  into  an 
agreement with his employer for granting him rights or privileges in respect of any matter which are more 
favourable to him than those to which he would be entitled under this Code. 

162.Delegation of powers.—The appropriate Government may, by notification, direct that all or any 
of the powers and functions which may be exercised or performed by that Government may, in relation to 
such matters and subject to such conditions, if any, as may be specified, be also exercisable by the Central 
Board,  the  Corporation,  the  National  Social  Security  Board,  the  State  Unorganised  Workers'  Board, 
Building  Workers'  Welfare  Board  or  any  officer  or  authority  subordinate  to  the  Central  Board,  the 
Corporation, the National Social Security Board, the State Unorganised Workers' Board, Building Workers' 
Welfare Board. 

163. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Code, the Central Government may, by order, published in the Official Gazette, make such provisions, 
not  inconsistent  with  the  provisions  of  this  Code,  as  may  be  necessary  or  expedient  for  removing  the 
difficulty: 

Provided that no such order shall be made under this section after the expiry of a period of two years 

from the commencement of this Code. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

164. Repeal and savings.—(1) The following enactments are hereby repealed, namely:— 

1. The Employee's Compensation Act, 1923 (8 of 1923); 

2. The Employees' State Insurance Act, 1948 (34 of 1948); 

3. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952); 

4. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 (31 of 1959); 

5. The Maternity Benefit Act, 1961 (53 of 1961) ; 

6. The Payment of Gratuity Act, 1972 (39 of 1972); 

7. The Cine-Workers Welfare Fund Act, 1981 (33 of 1981); 

8. The Building and Other Construction Workers' Welfare Cess Act, 1996 (28 of 1996); 

93 

 
9. The Unorganised Workers' Social Security Act, 2008 (33 of 2008). 

(2) Notwithstanding such repeal,— 

(a) anything done or any action taken under the enactments so repealed including any rule, regulation, 
notification (including the notifications issued by the States), scheme, appointment, order or direction 
made  thereunder  or  any  benefit  provided  or  given  under  any  provision  of  such  enactments,  rules, 
regulations, notifications or schemes made thereunder for any purpose shall be deemed to have been 
done or taken or provided for such purpose under the corresponding provisions of this Code including 
any rule, regulation, notification, scheme, appointment, order or direction made thereunder and shall 
be  in  force  to  the  extent  they  are  not  contrary  to  the  provisions  of  this  Code  including  any  rule, 
regulation, notification, scheme, appointment, order or direction made thereunder till they are repealed 
under the corresponding provisions of this Code including any rule, regulation, notification, scheme, 
appointment, order or direction made thereunder by the appropriate Government; 

(b)  the  Employees'  Provident  Funds  Scheme,  1952,  the  Employees'  Deposit  Linked  Insurance 
Scheme, 1976, the Employees' Pension Scheme, 1995 and the Tribunal (Procedure) Rules, 1997 framed 
or made under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) 
and the rules, regulations and schemes made or framed under the Employees' State Insurance Act, 1948 
(34 of 1948), shall remain in force, to the extent they are not inconsistent with the provisions of this 
Code for a period of one year from the date of commencement of this Code; 

(c) any exemption given under any enactments so repealed shall continue to be in force till its validity 
expires or it ceases to be in operation under the provisions of this Code or till any direction is made 
thereunder for such purpose. 

(3) Without prejudice to the provisions of sub-section (2), the provisions of section 6 of the General 

Clauses Act, 1897 (10 of 1897) shall apply to the repeal of such enactments. 

94 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
THE FIRST SCHEDULE 

[See sections 1(4), (8) and 152 (1)] 

APPLICABILITY 

Chapter No. 

Chapter Heading 

Applicability 

(1) 

III 

IV 

(2) 

(3) 

Employees' Provident 
Fund 

Every  establishment  in  which  twenty  or  more 
employees are employed. 

Employees’ State 
Insurance Corporation 

Every  establishment  in  which  ten  or  more 
persons  are  employed  other  than  a  seasonal 
factory: 

Provided 
that  Chapter  IV  shall  also  be 
applicable to an establishment, which carries on 
such hazardous or life threatening occupation as 
notified  by  the  Central  Government,  in  which 
even a single employee is employed: 

Provided  further 
that  an  employer  of  a 
plantation, may opt the application of Chapter 
IV  in  respect  of  the  plantation  by  giving 
willingness  to  the  corporation,  where  the 
benefits  available  to  the  employees  under  that 
Chapter  are  better  than  what  the  employer  is 
providing to them: 

Provided  also  that  the  contribution  from  the 
employers  and  employees  of  an  establishment 
shall be payable under section 29 on and from 
the date on which any benefits under Chapter IV 
relating  to  the  Employees  State  Insurance 
Corporation are provided by the Corporation to 
the  employees  of  the  establishment  and  such 
date 
the  Central 
Government. 

shall  be  notified  by 

(a) every factory, mine, oilfield, plantation, port 
and railway company; and 

(b) every shop or establishment in which ten or 
more  employees  are  employed,  or  were 
employed, on any day of the preceding twelve 
months;  and  such  shops  or  establishments  as 
may be notified by the appropriate Government 
from time to time. 

(a) to every establishment being a factory, mine 
or plantation including any such establishment 
belonging to Government; and 

(b) to every shop or establishment in which ten 
or  more  employees  are  employed,  or  were 
employed, on any day of the preceding twelve 
months; and such other shops or establishments 
notified by the appropriate Government. 

95 

V 

Gratuity 

VI 

Maternity Benefit 

 
 
 
 
VII 

VIII 

IX 

XIII 

Employee's Compensation  Subject  to  the  provisions  of  the  Second 
Schedule,  it  applies  to  the  employers  and 
employees to whom Chapter IV does not apply. 

Social Security and Cess 
in respect of Building and 
Other Construction 
Workers 

Every  establishment  which  falls  under  the 
building and other construction work. 

Social Security for 
Unorganised Workers' 

Unorganised  sector,  unorganised  workers',  gig 
worker, platform worker. 

Employment Information 
and Monitoring 

Career  centres,  vacancies,  persons  seeking 
services of career centres and employers. 

96 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
THE SECOND SCHEDULE 

[See sections 2(26), 74(3), (5), 132 and 152(2)] 

LIST OF PERSONS WHO ARE EMPLOYEES WITHIN THE MEANING OF 

THE THIRD PROVISO TO CLAUSE (26) OF SECTION 2 

The following persons are employees within the meaning of third proviso to clause (26) of section 2 

and subject to the said proviso, any person who is— 

(i)  employed  in  railways,  in  connection  with  the  operation,  repair  or  maintenance  of  a  lift  or  a 
vehicle propelled by steam or other mechanical power or by electricity or in connection with the loading 
or unloading of any such vehicle; or 

(ii) employed, in any premises wherein or within the precincts whereof a manufacturing process as 
defined in clause (k) of section 2 of the Factories Act, 1948 (63 of 1948), is being carried on, or in any 
kind of work whatsoever incidental to or connected with any such manufacturing process or with the 
article made whether or not employment in any such work is within such premises or precincts, and 
steam, water or other mechanical power or electrical power is used; or 

(iii) employed for the purpose of making, altering, repairing, ornamenting, finishing or otherwise 

adapting for use, transport or sale any article or part of an article in any premises; or 

Explanation.—For  the  purposes  of  this  clause,  persons  employed  outside  such  premises  or 
precincts  but  in  any  work  incidental  to,  or  connected  with,  the  work  relating  to  making,  altering, 
repairing, ornamenting, finishing or otherwise adapting for use, transport or sale of any article or part 
of an article shall be deemed to be employed within such premises or precincts; or 

(iv) employed in the manufacture or handling of explosives in connection with the employer's trade 

or business; or 

(v) employed, in any mine as defined in clause (j) of section 2 of the Mines Act, 1952 (35 of 1952), 
in any mining operation or in any kind of work, incidental to or connected with any mining operation 
or with the mineral obtained, or in any kind of work whatsoever below ground; or 

(vi) employed as the master or as a seaman of— 

(a) any ship which is propelled wholly or in part by steam or other mechanical power or by 

electricity or which is towed or intended to be towed by a ship so propelled; or 

(b)  any  sea  going  ship  not  included  in  sub-clause  (a)  provided  with  sufficient  area  for 

navigation under sails alone; or 

(vii) employed for the purpose of— 

(a) loading, unloading, fuelling, constructing, repairing, demolishing, cleaning or painting any 
ship of which he is not the master or a member of the crew, or handling or transport within the 
limits of any port subject to the Ports Act, 1908 (15 of 1908), or the Major Port Trusts Act, 1963 
(38 of 1963), of goods which have been discharged from or are to be loaded into any vessel; or 

(b) warping a ship through the lock; or 

(c) mooring and unmooring ships at harbour wall berths or in pier; or 

(d) removing or replacing dry dock caissons when vessels are entering or leaving dry docks; or 

(e) the docking or undocking of any vessel during an emergency; or 

97 

 
(f)  preparing  splicing  coir  springs  and  check  wires,  painting  depth  marks  on  lock-sides, 
removing or replacing fenders whenever necessary, landing of gangways, maintaining life-buoys 
up to standard or any other maintenance work of a like nature; or 

(g) any work on jolly-boats for bringing a ship's line to the wharf; or 

(viii) employed in the construction, maintenance, repair or demolition of— 

(a) any building which is designed to be or is or has been more than one storey in height above 

the ground or twelve feet or more from the ground level to the apex of the roof; or 

(b) any dam or embankment which is twelve feet or more in height from its lowest to its highest 

point; or 

(c) any road, bridge, tunnel or canal; or 

(d) any wharf, quay, sea-wall or other marine work including any moorings of ships; or 

(ix) employed in setting up, maintaining, repairing or taking down any telegraph or telephone line 
or post or any overhead electric line or cable or post or standard or fittings and fixtures for the same; or 

(x)  employed,  in  the  construction,  working,  repair  or  demolition  of  any  aerial  ropeway,  canal, 

pipeline or sewer; or 

(xi) employed in the service of any fire brigade; or 

(xii) employed upon a railway as defined in clause (31) of section 2 and sub-section (1) of section 
197 of the Railways Act, 1989 (24 of 1989), either directly or through a sub-contractor, by a person 
fulfilling a contract with the railway administration; or 

(xiii) employed as an inspector, mail guard, sorter or van peon in the Railway Mail Service or as a 
telegraphist  or  as a  postal or  railway  signaller,  or employed  in  any  occupation ordinarily  involving 
outdoor work in the Indian Posts and Telegraphs Department; or 

(xiv) employed, in connection with operation for winning natural petroleum or natural gas; or 

(xv) employed in any occupation involving blasting operations; or 

(xvi) employed in the making of any excavation for which explosives have been used, or whose 

depth from its highest to its lowest point exceeds twelve feet; or 

(xvii) employed in the operation of any ferry boat capable of carrying more than ten persons; or 

(xviii)  employed  on  any  estate  which  is  maintained  for  the  purpose  of  growing  cardamom, 

cinchona, coffee, rubber or tea; or 

(xix) employed in the generating, transforming, transmitting or distribution of electrical energy or 

in generation or supply of gas; or 

(xx) employed in a lighthouse as defined in clause (d) of section 2 of the Indian Lighthouse Act, 

1927 (17 of 1927); or 

(xxi) employed in producing cinematograph pictures intended for public exhibition or in exhibiting 

such pictures; or 

(xxii) employed in the training, keeping or working of elephants or wild animals; or 

(xxiii) employed in the tapping of palm-trees or the felling or logging of trees, or the transport of 

timber by inland waters, or the control or extinguishing of forests fires; or 

(xxiv) employed in operations for the catching or hunting of elephants or other wild animals; or 

98 

 
(xxv) employed as a diver; or 

(xxvi) employed in the handling or transport of goods in, or within the precincts of,— 

(a) any warehouse or other place in which goods are stored; or 

(b) any market; or 

(xxvii) employed in any occupation involving the handling and manipulation of radium or X-rays 

apparatus, or contact with radioactive substances; or 

(xxviii)  employed  in  or  in  connection  with  the  construction,  erection,  dismantling,  operation  or 

maintenance of an aircraft as defined in section 2 of the Indian Aircraft Act, 1934 (22 of 1934); or 

(xxix) employed in horticultural operations, forestry, bee-keeping or farming by tractors or other 

contrivances driven by steam or other mechanical power or by electricity; or 

(xxx) employed in the construction, working, repair or maintenance of a tube-well; or 

(xxxi) employed in the maintenance, repair or renewal of electric fittings in a building; or 

(xxxii) employed in a circus; or 

(xxxiii) employed as watchman in any factory or establishment; or 

(xxxiv) employed in any operation in the sea for catching fish; or 

(xxxv)  employed  in  any  employment  which  requires  handling  of  snakes  for  the  purpose  of 
extraction of venom or for the purpose of looking after snakes or handling any other poisonous animal 
or insect; or 

(xxxvi) employed in handling animals like horses, mules and bulls; or 

(xxxvii) employed for the purpose of loading or unloading any mechanically propelled vehicle or 

in the handling or transport of goods which have been loaded in such vehicles; or 

(xxxviii) employed in cleaning of sewer lines or septic tanks within the limits of a local authority; 

or 

(xxxix) employed on surveys and investigation, exploration or gauge or discharge observation of 
rivers including drilling operations, hydrological observations and flood forecasting activities, ground 
water surveys and exploration; or 

(xl) employed in cleaning of jungles or reclaiming land or ponds; or 

(xli) employed in cultivation of land or rearing and maintenance of live-stock or forest operations 

or fishing; or 

(xlii)  employed  in  installation,  maintenance  or  repair  of  pumping  equipment  used  for  lifting  of 

water from wells, tube-wells, ponds, lakes, streams and the like; or 

(xliii) employed in the construction, boring or deepening of an open well or dug well, bore well, 

bore-cum-dug well, filter point and the like; or 

(xliv) employed in spraying and dusting of insecticides or pesticides in agricultural operations or 

plantations; or 

(xlv) employed in mechanised harvesting and threshing operations; or 

(xlvi) employed in working or repair or maintenance of bulldozers, tractors, power tillers and the 

like; or 

99 

 
(xlvii) employed as artist for drawing pictures on advertisement boards at a height of 3.66 metres 

or more from the ground level; or 

(xlviii) employed in any newspaper establishment as defined in the Working Journalists and Other 
Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 (45 of 1955) 
and engaged in outdoor work; or 

(xlix) employed as sales promotion employee; or 

(l)  any  other  employee  or  class  of  employee  employed  in  an  establishment  or  class  of 
establishments to which the Employees' Compensation Act, 1923 (8 of 1923) was applicable in any 
State immediately before the commencement of this Code. 

100 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
THE THIRD SCHEDULE 

[See sections 2 (51), 36(1), 74 (1), (3), (5), 131(5), 132 and 152(2)] 

LIST OF OCCUPATIONAL DISEASES 

Serial No. 
(1) 

Occupational disease 
(2) 

(3) 

Employment 

PART A 

1. Infectious and parasitic diseases contracted in 
an occupation where there is a particular risk of 
contamination 

2. Diseases caused by work in compressed air 

(a) all work involving exposure to health or 
laboratory work; 
(b) all work involving exposure to veterinary 
work; 
(c) work relating to handling animals, animal 
carcasses, part of such carcasses, or merchandise 
which may have been contaminated by animals or 
animal carcasses; 
(d) other work carrying a particular risk of 
contamination. 
All work involving exposure to the risk 
concerned. 

3. Diseases caused by lead or its toxic compounds  3. All work involving exposure to the risk 

4. Poisoning by nitrous fumes 

5. Poisoning by organo phosphorus compounds 

concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 

PART B 

1. Diseases caused by phosphorus or its toxic 
compounds 
2. Diseases caused by mercury or its toxic 
compounds 
3. Diseases caused by benzene or its toxic 
homologues 
4. Diseases caused by nitro and amido toxic 
derivatives of benzene or its homologues 
5. Diseases caused by chromium or its toxic 
compounds 
6. Diseases caused by arsenic or its toxic 
compounds 
7. Diseases caused by radioactive substances and 
ionising radiations 
8. Primary epitheliomatous cancer of the skin 
caused by tar, pitch, bitumen, mineral oil, 
anthracene, or the compounds, products or 
residues of these substances 
9. Diseases caused by the toxic halogen 
derivatives of hydrocarbons (of the aliphatic and 
aromatic series). 
10. Diseases caused by carbon disulphide 

11. Occupational cataract due to infra-red 
radiations 

All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the action of 
radioactive substances or ionising radiations. 
All work involving exposure to the risk 
concerned. 

All work involving exposure to the risk 
concerned. 

All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 

101 

 
 
 
12. Diseases caused by manganese or its toxic 
compounds 
13. Skin diseases caused by physical, chemical or 
biological agents not included in other items 
14. Hearing impairment caused by noise 

15. Poisoning by dinitrophenol or a homologue or 
by substituted dinitro-phenol or by the salts of 
such substances 
16. Diseases caused by beryllium or its toxic 
compounds 
17. Diseases caused by cadmium or its toxic 
compounds 
18. Occupational asthma caused by recognised 
sensitising agents inherent to the work process 
19. Diseases caused by fluorine or its toxic 
compounds 
20. Diseases caused by nitroglycerin or other 
nitroacid esters 
21. Diseases caused by alcohols and ketones 

22. Diseases caused by asphyxiants, carbon 
monoxide and its toxic derivatives, hydrogen 
sulphide 
23. Lung cancer and mesotheliomas caused by 
asbestos 
24. Primary neoplasm of the epithelial lining of 
the urinary bladder or the kidney or the ureter 
25. Snow blindness in snow bound areas 

26. Diseases due to effect of heat in extreme hot 
climate 
27. Diseases due to effect of cold in extreme cold 
climate 

All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 

All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 

All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 

PART C 

1. Pneumoconioses caused by sclerogenic mineral 
dust (silicoses, anthraoosilicosis, asbestosis) and 
silico-tuberculosis provided that silicosis is an 
essential factor in causing the resultant incapacity 
or death 
2. Bagassosis 

3. Bronchopulmonary diseases caused by cotton, 
flax hemp and sisal dust (Byssionsis). 
4. Extrinsic allergic alveelitis caused by the 
inhalation of organic dusts 
5. Bronchopulmonary diseases caused by hard 
metals 
6. Acute Pulmonary oedema of high altitude. 

All work involving exposure to the risk 
concerned. 

All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 
All work involving exposure to the risk 
concerned. 

102 

 
 
 
 
 
THE FOURTH SCHEDULE 
[See sections 2(55), (56), 76(1) and 152(1)] 
PART I 
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT 
TOTAL DISABLEMENT 

Description of Injury 

(2) 

Loss of both hands or amputation at higher sites 
Loss of a hand and a foot 
Double amputation through leg or thigh, or amputation 
through leg or thigh on one side and loss of other foot 
Loss of sight to such an extent as to render the claimant 
unable to perform any work for which eye-sight is essential 
Very severe facial disfigurement 
Absolute deafness 

Percentage of 
loss of earning capacity 
(3) 
100 
100 
100 

100 

100 
100 

PART II 
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT 
PARTIAL DISABLEMENT 

Description of Injury 

(2) 

Amputation through shoulder joint 
Amputation below shoulder with stump less than [20.32 
Cms.] from tip of acromion 
Amputation form [20.32 Cms.] from tip of acromion to less 
than [11.43 Cms.] below tip of olecranon 
Loss of a hand or of the thumb and four fingers of one hand 
or amputation from [11.43 Cms.] below tip of olecranon 
Loss of thumb 
Loss of thumb and its metacarpal bone 
Loss of four fingers of one hand 
Loss of three fingers of one hand 
Loss of two fingers of one hand 
Loss of terminal phalanx of thumb 
Guillotine amputation of tip of thumb without loss of bone 

Amputation cases-lower limbs 

Amputation of both feet resulting in end bearing stumps 
Amputation  through  both  feet  proximal  to  the  metatarso-
phalangeal joint 
Loss of all toes of both feet through the metatarso-phalangeal 
joint 
Loss of all toes of both feet proximal to the proximal inter-
phalangeal joint 
Loss  of  all  toes  of  both  feet  distal  to  the  proximal  inter-
phalangeal joint 
Amputation at hip 
Amputation below hip with stump not exceeding [12.70 
Cms.] in length measured from tip of great trenchanter 

Amputation below hip with stump exceeding [12.70 Cms.] 
in length measured from tip of great trenchanter but not 
beyond middle thigh 
Amputation below middle thigh to [8.89 Cms.] below knee 
Amputation below knee with stump exceeding [8.89 Cms.] 
but not exceeding [12.70 Cms.] 

103 

Percentage of 
loss of earning capacity 
(3) 
90 
80 

70 

60 

30 
40 
50 
30 
20 
20 
10 

90 
80 

40 

30 

20 

90 
80 

70 

60 
50 

Serial 
No. 
(1) 
1. 
2. 
3. 

4. 

5. 
6. 

Serial 
No. 
(1) 
1. 
2. 

3. 

4. 

5. 
6. 
7. 
8. 
9. 
10. 
11. 

12. 
13. 

14. 

15. 

16. 

17. 
18. 

19. 

20. 
21. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
22. 
23. 
24. 

25. 

26. 

27. 

28. 

29. 
30. 
31. 
32. 

33. 
34. 
35. 
36. 

37. 
38. 
39. 
40. 

41. 
42. 

43. 
44. 

45. 
46. 

47. 
48. 

49. 
50. 

Amputation below knee with stump exceeding [12.70 Cms.]  50 
50 
Amputation of one foot resulting in end bearing 
50 
Amputation through one foot proximal to the metatarso-
phalangeal joint 
Loss of all toes of one foot through the metatarso-
phalangeal joint 

20 

Other injuries 

Loss of one eye, without complications, the other being 
normal 
Loss of vision of one eye, without complications or 
disfigurement of eye-ball, the other being normal 
Loss of partial vision of one eye 
Loss of— 

A-Fingers of right or left hand 
Index finger 

Whole 
Two phalanges 
One phalanx 
Guillotine amputation of tip without loss of bone 

Middle finger 

Whole 
Two phalanges 
One phalanx 
Guillotine amputation of tip without loss of bone 

Ring or little finger 

Whole 
Two phalanges 
One phalanx 
Guillotine amputation of tip without loss of bone 

B-Toes of right or left foot 
Great toe 

Through metatarso-phalangeal joint 
Part, with some loss of bone 

Any other toe 

40 

30 

10 

14 
11 
9 
5 

12 
9 
7 
4 

7 
6 
5 
2 

14 
3 

Through metatarso-phalangeal joint 
Part, with some loss of bone 

Through metatarso-phalangeal joint 
Part, with some loss of bone 

3 
1 
Two toes of one foot, excluding great toe 
5 
2 

Three toes of one foot, excluding great toe 

Through metatarso-phalangeal joint 
Part, with some loss of bone 

6 
3 

Four toes of one foot, excluding great toe 

Through metatarso-phalangeal joint 
Part, with some loss of bone 

9 
3 

104 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
THE FIFTH SCHEDULE 
[See sections 15(2) and 152(1)] 
MATTERS THAT MAY BE PROVIDED FOR IN THE SCHEMES 
Any scheme framed under section 15 may provide for any or all of the matters as 
specified below, namely:— 
PART A 

Matters on which the Provident Fund Scheme may make provisions 
(2) 

The employees or class of employees who shall join the Fund, and the conditions 
under which employees may be exempted from joining the Fund or from making 
any contribution. 
The time and manner in which contributions shall be made to the Fund by employers 
and by, or on behalf of, employees, (whether employed by him directly or by or 
through a contractor), the contributions which an employee may, if he so desires, 
make under section 16, and the manner in which such contributions may be 
recovered. 
The manner in which employees' contributions may be recovered by contractors 
from employees employed by or through such contractors. 
The payment by the employer of such sums of money as may be necessary to meet 
the cost of administering the Fund and the rate at which and the manner in which 
the payment shall be made. 
The constitution of any committee for assisting any board of trustees. 
The opening of regional and other offices of any board of trustees. 
The manner in which accounts shall be kept, the investment of moneys belonging 
to the Fund in accordance with any directions issued or conditions specified by 
the Central Government, the preparation of the budget, the audit of accounts and 
the submission of reports to the Central Government, or to any specified State 
Government. 
The conditions under which withdrawals from the Fund may be permitted and any 
deduction or forfeiture may be made and the maximum amount of such deduction 
or forfeiture. 
The fixation by the Central Government in consultation with the boards of trustees 
concerned of the rate of interest payable to members. 
The form in which an employee shall furnish particulars about himself and his 
family whenever required. 
The nomination of a person to receive the amount standing to the credit of a 
member after his death and the cancellation or variation of such nomination. 
The registers and records to be maintained with respect to employees and the 
returns to be furnished by employers or contractors. 
The form or design of any identity card, token or disc for the purpose of identifying 
any employee, and for the issue, custody and replacement thereof. 
The fees to be levied for any of the purposes specified in this Schedule. 
The contraventions or defaults which shall be punishable under section 135. 
The further powers, if any, which may be exercised by Inspector-cum-Facilitators. 
The manner in which accumulations in any existing provident fund shall be 
transferred to the Fund and the mode of valuation of any assets which may be 
transferred by the employers in this behalf. 
The conditions under which a member may be permitted to pay premia on life 
insurance, from the Fund. 
Any other matter which is to be provided for in the Scheme or which may be 
necessary or proper for the purpose of implementing the Scheme. 

PART B 
MATTERS THAT MAY BE PROVIDED FOR IN THE PENSION SCHEME 

The employees or class of employees to whom the Pension Scheme shall apply. 
The portion of employers' contribution to the Provident Fund which shall be credited 
to the Pension Fund and the manner in which it is credited. 
The regulation of the manner in which and the period of service for which, no 
contribution is received. 

105 

Serial No. 
(1) 
1. 

2. 

3. 

4. 

5. 
6. 
7. 

8. 

9. 

10. 

11. 

12. 

13. 

14. 
15. 
16. 
17. 

18. 

19. 

1. 
2. 

3. 

 
 
4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

12. 

The manner in which employees' interest will be protected against default in payment 
of contribution by the employer. 
The manner in which the accounts of the Pension Fund shall be kept and investment 
of moneys belonging to Pension Fund to be made subject to such pattern of 
investment as may be determined by the Central Government. 
The form in which an employee shall furnish particulars about himself and the 
members of his family whenever required. 
The forms, registers and records to be maintained in respect of employees, required 
for the administration of the Pension Scheme. 
The scale of pension and pensionary benefits and the conditions relating to grant 
of such benefits to the employees. 
The manner in which the exempted establishments have to pay contribution towards 
the Pension Scheme and the submission of returns relating thereto. 
The mode of disbursement of pension and arrangements to be entered into with 
such disbursing agencies as may be specified for the purpose. 
The manner in which the expenses for administering the Pension Scheme will be 
met from the income of the Pension Fund. 
Any other matter which is to be provided for in the Pension Scheme or which may 
be necessary or proper for the purpose of implementation of the Pension Scheme. 

PART C 
MATTERS THAT MAY BE PROVIDED FOR IN THE EMPLOYEES' DEPOSIT-LINKED 
INSURANCE SCHEME 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

The employees or class of employees who shall be covered by the Insurance 
Scheme. 
The manner in which the accounts of the Insurance Fund shall be kept and the 
investment of moneys belonging to the Insurance Fund subject to such pattern of 
investment as may be determined, by order, by the Central Government. 
The form in which an employee shall furnish particulars about himself and the 
members of his family whenever required. 
The nomination of a person to receive the insurance amount due to the employee 
after his death and the cancellation or variation of such nomination. 
The registers and records to be maintained in respect of employees; the form or 
design of any identity card, token or disc for the purpose of identifying any 
employee or his nominee or member of his family entitled to receive the insurance 
amount. 
The scales of insurance benefits and conditions relating to the grant of such 
benefits to the employees. 
The manner in which the amount due to the nominee or the member of the family of 
the employee under the scheme is to be paid including a provision that the amount 
shall not be paid otherwise than in the form of a deposit in a savings bank account, 
in the name of such nominee or member of family, in any corresponding new bank 
specified in the First Schedule to the Banking Companies (Acquisition and Transfer 
of Undertakings) Act, 1970 (5 of 1970). 
Any other matter which is to be provided for in the Employees' Deposit-linked 
Insurance Scheme or which may be necessary or proper for the purpose of 
implementing that Scheme. 

106 

 
 
 
 
 
 
 
 
 
THE SIXTH SCHEDULE 
[See sections 75, 76(1) and 152(1)] 
FACTORS FOR WORKING OUT LUMP SUM EQUIVALENT OF COMPENSATION 
AMOUNT IN CASE OF PERMANENT DISABLEMENT AND DEATH 

                                                Completed years of age on the last birthday of the 
                                                employee immediately preceding the date on which 
                                                the compensation fell due 
(1) 
Not more than 

(2) 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
58 
59 
60 
61 
62 
63 
64 
65 or more 

107 

Factors 

(3) 
228.54 
227.49 
226.38 
225.22 
224.00 
222.71 
221.37 
219.95 
218.47 
216.91 
215.28 
213.57 
211.79 
209.92 
207.98 
205.95 
203.85 
201.66 
199.40 
197.06 
194.64 
192.14 
189.56 
186.90 
184.17 
181.37 
178.49 
175.54 
172.52 
169.44 
166.29 
163.07 
159.80 
156.47 
153.09 
149.67 
146.20 
142.68 
139.13 
135.56 
131.95 
128.33 
124.70 
121.05 
117.41 
113.77 
110.14 
106.52 
102.93 
99.37 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
THE SEVENTH SCHEDULE 
[See section 114(4)] 
CLASSIFICATION OF AGGREGATORS 

Sl. No. 
1. 
2. 
3. 
4. 

5. 
6. 
7. 
8. 
9. 

Classification of Aggregator 
Ride sharing services 
Food and grocery delivery services 
Logistic services 
e-Market place (both market place and inventory model) for wholesale/ 
retail sale of goods and/or services (B2B/B2C) 
Professional services provider 
Healthcare 
Travel and hospitality 
Content and media services 
Any other goods and services provider platform 

108 

 
 
